HELSINKI: The next year’s budget deficit is forecast to be 5.3 billion euros, Finance Minister Alexander Stubb said on Wednesday. The overall debt burden will rise to 106 billion euros. A net savings of 900 million euros will be made in next year’s budget compared to the 2015 fiscal.
According to Stubb, a 200 million euro savings will be made on development cooperation, 210 million on education and higher education, 78 million on medical care, and 40 million on state administration.
“The budget for next year is unsurprisingly tight,” Stubb said. The main theme of the government economic policy, according to Stubb, is confidence, predictability and consistency. According to Stubb, the value judgement of the budget is investment on employment and ensuring that work becomes worthwhile. This is reflected in the 450 million euro increase in earned income allowance, which will reduce taxation burden on low and middle income earners.
