News of the week in plain Finnish | Saturday 5.9.2026
Finnish state budget.
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Introducing the topic of the week
The topic of the program this time is the Finnish state budget. The government has agreed on state revenue and expenditure. State expenditure will be greater than revenue next year.
We will now tell you more about next year’s state budget.
Government revenue and expenditure
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Photo: Silja Viitala / Yle
The government this week agreed on the state budget for next year. The budget explains where the state will spend money and where it will save. This is the last budget of Prime Minister Petteri Orpo’s government.
The state budget is in deficit. This means that the state will have more spending than revenue next year.
The government is cutting funding for social and health organizations. Many municipalities receive less money from the state than before. The state is also supporting housing construction less than before.
The Finnish government is spending more money on defense. Additional money is also being given to support Ukraine.
More money will be spent on road and rail work. More money will also be spent on research and development than before.
Taxation
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Photo: Antti Ullakko / Yle
The government decided on next year’s taxes.
Taxation will change so that the corporate tax paid by companies will decrease from 20 percent to 18 percent. Corporate tax is a tax that a company pays on its profits.
Payroll taxes for low- and middle-income earners will be reduced. This could mean an extra 100 or 200 euros per year for some people.
The price of gasoline and diesel may decrease slightly because fuels are taxed less than before. Taxes on alcohol and tobacco will increase.
Opposition review
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Photo: Mikko Koski / Yle
The opposition criticizes the budget. Opposition parties criticize the corporate tax cut.
The opposition says that the government is giving money to companies and cutting back on organizations.
The opposition believes that the Finnish economy will suffer from the decisions.
SDP chairman Antti Lindtman believes that the money should be used to create more jobs.
Repetition
This week’s news in plain Finnish reported on the Finnish state budget. Let’s recap the most important things.
The government has agreed on the state’s revenue and expenditure for next year. Expenditure is higher than revenue. Most of the additional money will go to defense. Low- and middle-income earners will pay less tax on their salaries than before. The opposition believes that the decisions will weaken the Finnish economy.
This was the news of the week in plain Finnish. See you again, bye!