Here are the main takeaways from this week’s budget wrangling.
The government has agreed on a public finance plan for 2027–2030 following two days of budget framework talks.
The coalition plans to cut 240 million euros from social and healthcare and a further 60 million from central government administration.
At the same time, the government is rolling out some targeted support measures. These include a bigger household tax credit, help for commuter driving, tweaks to entrepreneurs’ pension rules, and more money for drone defence.
The state budget deficit is expected to remain around 13 billion euros this year and next.
Social and healthcare cuts: 240 million euros
New service fees and price increases include:
- Specialist exams: €52.40
- Surgery and other procedures: €257.20
- Day surgery: 257,20 € (increase +€23.40)
- Outpatient fee: 78.40 € (increase +€7.10)
- Storage of deceased: €10 / day
- Determining cause of death: €60.60
- Health centre fee: increase +20%
- Dental care fees: increases expected
Bigger household tax credit
The household tax credit is set to increase. The maximum deduction will rise from €1,600 to €2,100, and the deduction rate will be lifted from 35 to 40 percent. The changes are intended to enter into force later this year.
Renovation and energy tax support
The government is allocating 80 million euros this year and 30 million in 2027 to encourage energy efficiency improvements in housing and support renovation loans.
At the same time, agricultural energy tax refunds will rise, easing costs for farms with high fuel use.
Startup tax changes
Options were previously taxed based on their grant date. Now they will instead be taxed when they are exercised.
Voucher for long-term unemployed
Twenty million euros is being earmarked for further training of the long-term unemployed. The funding can be used for paid studies lasting up to six months.
Vehicle tax down
The vehicle tax will be cut by ten million euros starting in 2028.
Diesel relief
The government plans diesel tax relief for professional drivers via tax refunds, but the measure would only take effect in 2028 and could be revised by the next government.
Driving to work gets cheaper
The commuter travel tax deduction is likely to see a temporary cut in its deductible from 900 to 800 euros per year. After the deductible is met, travel costs can be deducted up to 7,000 euros.
First-mortgage access eases
For first-time homebuyers, the required money down for state-backed ASP loans will be reduced from 10 to five percent, with the maximum repayment period growing to 40 years. The state will now back 90 percent of the mortgage, up from 85 percent.
Changes to entrepreneur pensions
The government is reforming the entrepreneurs’ pension insurance system (YEL). From 2028, business owners would be able to choose whether their pension contributions are based on taxable business income or the current notional YEL income level.
More drone funding
More funding is in the works to strengthen drone defence. There is also an overall goal of reaching the Nato-agreed defence spending target of 3.5 percent of GDP.
€300 million for Ukraine
Military support for Ukraine will be increased by a total of 300 million euros with procurements from the Finnish defence industry.
