Minister of Social Affairs and Health Kaisa Juuso (PS) responded to a question during a question-time debate in Finnish parliament in Helsinki on Thursday, 27 February 2025. Juuso refrained from providing any details about future cuts in social and health care spending, saying the preparatory work has been suspended and the government will revisit the issue in its midway session in late April. (Jussi Nukari – Lehtikuva)
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OPPOSITION PARTIES grilled the government about additional cuts in social and health care spending during a question-time debate in parliament on Thursday, 27 February, reports Helsingin Sanomat.
Matias Mäkynen (SDP) contrasted the cuts – expected to be in the region of 200 million euros – to reports suggesting the government could scrap the gift and inheritance taxes and replace them with capital gains tax.
“A tax cut worth over 900 million euros for the highest-income and wealthiest people; at the same time there’s talk about cuts of almost 200 million euros in social welfare,” he stated, reminding that numerous economists have voiced their doubts that scrapping the inheritance tax could accelerate economic growth in any meaningful way.
Helsingin Sanomat on Thursday revealed that a government-appointed task force is set to propose the tax reform as a means to promote growth in a report to be published today on Friday. A number of economists said to the newspaper last month that eliminating the inheritance tax would likely not accelerate economic growth significantly.
Prime Minister Petteri Orpo (NCP) responded to Mäkynen by reminding that the report was not drafted by the government but reflects the views of experts on measures to boost growth.
“I’m very serious and excited about it,” he stated, highlighting that the task force collected over a thousand proposals for accelerating growth from citizens, companies, interest groups and political parties – including from the opposition.
“Let’s do this together. Let’s put together the best ideas that create jobs for Finns and bring investments to Finland. Let’s not ruin this, too,” he pleaded.
Helsingin Sanomat described the question-time debate as very repetitive, as opposition lawmakers were not satisfied with what the government had to say about the cuts in social and health care spending.
Minister of Social Affairs and Health Kaisa Juuso (PS) responded to a question about the upcoming cuts by pointing out that the government slashed 100 million euros in spending on social care in the spring of 2024.
“Because our knowledge base of social care services is very shaky and very incomplete, it’s tough to find rational, targeted savings measures. That’s why I’ve announced that we’re calling a timeout and will revisit the issue with other ruling parties in the midway session this spring,” she stated.
Eveliina Heinäluoma (SDP) was not satisfied with the answer, viewing that the ministry must know where the cuts will be made, but the ruling parties are reluctant to release the details before the county and municipal elections on 13 April.
Orpo, in response, promised that the government would provide more information about the possible additional cuts before the elections.
Something is off, said Antti Lindtman, the chairperson of the Social Democrats. Lindtman said the government decided a year ago to create savings of 170 million euros in social and health care services. After a full year of preparatory work, Juuso has announced that the preparatory work has been suspended.
“[Juuso] is saying no preparatory work is ongoing. And the prime minister is saying that Finns would learn about the cuts before the elections,” he said.
Aleksi Teivainen – HT
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Source: www.helsinkitimes.fi