Local Government Finances Programme 2018–2021 published online

The Local Government Finances Programme 2018–2021 has been prepared in connection with the General Government Fiscal Plan. The state of local government finances and the impact of the Government’s measures on local government finances are described on the basis of the new information available. The programme takes into account the effects of the health, social services and regional government reform on local government finances in a manner similar to other preparation of the General Government Fiscal Plan preparation.

The Local Government Finances Programme focuses particularly on examining central government measures and the development outlook for local government finances. In addition to local government finances as a whole, the effects of measures have been assessed, up to 2018, by municipality size group and from the perspective of the principle of adequate financial resources. For the spending limits period following the regional government reform, municipality and municipality size group assessments will be prepared in summer 2017, after which these assessments as well as the assessment of the principle of adequate financial resources will be published as a separate appendix to the Local Government Finances Programme.

The Local Government Finances Programme has been prepared in a secretariat appointed by the Ministry of Finance, which included all the key ministries preparing legislation on the tasks of the municipalities and central government measures impacting local government finances. The Association of Finnish Local and Regional Authorities also participated. The Economics Department of the Ministry of Finance has prepared a projection of local government finances, which in this programme is presented in local government accounting terms. The Government has considered the Local Government Finances Programme in the spending limits discussion. Negotiations between the central government and the municipalities have been held in the Advisory Committee on Local Government Finances and Administration and in a finance subcommittee conducting preparatory work for the negotiations.

Local Government Finances Programme 2018–2021 (in finnish)

Inquiries:

Ville-Veikko Ahonen, Ministerial Adviser, tel. +358 2955 30066, ville-veikko.ahonen(at)vm.fi

Jussi Lammassaari, Project Coordinator, tel. +358 2955 30060, jussi.lammassaari(at)vm.fi