Prime Minister Petteri Orpo (NCP) and Minister of Finance Riikka Purra (PS) attended a provisional parliamentary debate in the Parliament House on 24 September 2024. Orpo and Purra on Thursday made apparently contradictory remarks about the government’s goal of bringing down the deficit in the budget economy to one per cent of GDP by 2027. (Vesa Moilanen – Lehtikuva)
- Next Article Tavio faces presidential criticism, interpellation over decision not to participate in equality alliance
MINISTER of Finance Riikka Purra (PS) on Thursday stated that the Finnish government has given up on one of the key goals of its policy agenda – the goal of curbing the deficit in the public economy to one per cent of gross domestic product by 2027.
Purra made the statement at a tax seminar hosted by the Finland Chambers of Commerce, according to YLE.
The goal, she explained, was adopted during the coalition formation negotiations, but the economic situation has since proven more difficult than expected in the spring of 2023.
The Ministry of Finance unveiled its new economic forecast last week, estimating that around four billion euros in additional austerity measures will be required to bring down the deficit to one per cent by the end of the electoral term. Its forecast indicates that the deficit will stand at 3.7 per cent in 2024, 3.2 per cent in 2025, 2.6 per cent in 2026 and 2.3 per cent in 2027.
Purra on Thursday said according to the public broadcasting company that the government is focused fully on its other key fiscal goal – the goal of bringing the debt ratio under control by the end of the electoral term.
Prime Minister Petteri Orpo (NCP), though, insisted that both goals remain on the agenda while assuring that there is no major rift within the government on the deficit goal.
“I don’t want to use the word ‘give up’,” he commented to reporters at Kesäranta in Helsinki on Thursday. “It’s a long way away, it’ll require a lot of work. But I want to believe that the reforms the government has made make it possible for growth to be faster than what’s currently forecast.”
Also Orpo said the government is focused on bringing the debt ratio under control. The government, he added, will examine later whether it is also possible to meet the budget deficit goal and whether there is a need for more extensive fiscal adjustments, namely spending cuts and tax increases.
Aleksi Teivainen – HT
- Next Article Tavio faces presidential criticism, interpellation over decision not to participate in equality alliance
Source: www.helsinkitimes.fi
