Budget review 2022 : Review on central government budget proposal, September 2021
Ministry of Finance
27.09.2021
Julkaisusarja:
Publications of the Ministry of Finance 2021:57Julkaisun pysyvä osoite on
http://urn.fi/URN:ISBN:978-952-367-705-0Tiivistelmä
This publication examines the budget proposal for 2022, which will be submitted to Parliament in September. The aim is to provide a concise description of the central themes of the 2022 Budget. The budget proposal is based on an independent economic forecast produced by the Economics Department at the Ministry of Finance, which is presented in
the Economic Survey.
Economic recovery from the coronavirus pandemic has been faster than expected in 2021. The economic recovery will continue in the autumn, especially in the sectors that are still subject to restrictions. As a result, economic growth will remain strong during the second half of 2021 and early 2022. Growth in employment has significantly accelerated in the first half of the year.
The coronavirus pandemic increased the general government deficit to a high level in 2020. General government finances were weakened by an economic downturn and the support measures prompted by the pandemic. The rapid economic growth after the downturn will improve public finances in 2021, but the general government deficit will remain high. Economic growth and a sharp reduction in the support measures prompted by the COVID-19 situation will also strengthen general government finances in 2022. However, general government finances will still remain in deficit after a short period of economic upturn.
The appropriations in the budget proposal for 2022 amount to EUR 64.8 billion. The central government on-budget deficit is predicted to amount to approximately EUR 6.9 billion and central government debt is expected to rise to approximately EUR 146 billion. Compared to the actual 2021 budget, the expenditure will decrease by EUR 1.5 billion, particularly as a result of a decline in expenditure related to the coronavirus outbreak. Meanwhile, the expenditure will be increased by statutory and contractual index increases, the transition costs resulting from the reform of healthcare and social welfare and rescue services, payments to the European Union and a change in the timing of the funding for the wellbeing services counties.
Diagrams 3 and 7 (pages 13 and 26) were updated on 12 October 2021.
the Economic Survey.
Economic recovery from the coronavirus pandemic has been faster than expected in 2021. The economic recovery will continue in the autumn, especially in the sectors that are still subject to restrictions. As a result, economic growth will remain strong during the second half of 2021 and early 2022. Growth in employment has significantly accelerated in the first half of the year.
The coronavirus pandemic increased the general government deficit to a high level in 2020. General government finances were weakened by an economic downturn and the support measures prompted by the pandemic. The rapid economic growth after the downturn will improve public finances in 2021, but the general government deficit will remain high. Economic growth and a sharp reduction in the support measures prompted by the COVID-19 situation will also strengthen general government finances in 2022. However, general government finances will still remain in deficit after a short period of economic upturn.
The appropriations in the budget proposal for 2022 amount to EUR 64.8 billion. The central government on-budget deficit is predicted to amount to approximately EUR 6.9 billion and central government debt is expected to rise to approximately EUR 146 billion. Compared to the actual 2021 budget, the expenditure will decrease by EUR 1.5 billion, particularly as a result of a decline in expenditure related to the coronavirus outbreak. Meanwhile, the expenditure will be increased by statutory and contractual index increases, the transition costs resulting from the reform of healthcare and social welfare and rescue services, payments to the European Union and a change in the timing of the funding for the wellbeing services counties.
Diagrams 3 and 7 (pages 13 and 26) were updated on 12 October 2021.