There is a “common tone” within the government about cutting pensions – 2024-04-16 02:15:10

Prime minister Petteri Orpon (kok) says there is a common tone in the government about cutting pensions.

According to preliminary information, the taxation of pensions is getting tighter. However, it is done in such a way that the smallest pensions are not touched. According to information from Iltalehti, the taxation of high-income earners will be tightened.

Orpo’s board will meet on Monday and Tuesday to decide on the 2025-2028 public finance plan. The chairman of the parliamentary group of the Prime Minister’s Party Matias Marttinen led by the working group has done preparatory work for the riit.

Chairmen of the governing parties: Prime Minister Orpo, Minister of Finance Riikka Purra (ps), Minister of Education Anna-Maja Henriksson and the Minister of Agriculture and Forestry Sari Essayah (kd) held a press conference at the start of the riot on Monday in the Smolna press room of the State banquet hall.

Three billion adjustment

– This is going to be extremely difficult, Orpo described the hard adaptation decisions of the frame-up.

The purpose is to adjust Finland’s public finances, which are in bad shape, for three billion euros, in addition to the 6 billion euro adjustment measures decided last year.

Orpo’s government justifies the additional adjustment by the fact that the state budget deficit has already reached 12.9 billion euros for the current year. It is about one and a half billion more than what the government estimated during the autumn budget rush.

The deficit of the national economy is especially inflated by the increased health and safety expenditures, defense procurements, the increase in interest expenses and the reduction in tax revenues. The total of 3 billion euros to be decided in Kehysrihi consists of cuts of 2 billion euros and tax increases of 1 billion euros.

Orpo said that in addition to adjustments, the government will also focus on growth measures and maintaining hope for the future. He specifies that no new money can be invested in growth measures. But if money is added somewhere, let’s see where it can be taken out.

All means exhausted

Finance Minister Riikka Purra emphasized many times that all means have been exhausted.

According to preliminary information, the main focus of tax increases is on value added tax. The general value added tax will probably increase from the current 24 percent. The government also intervenes in the reduced VAT rates of 10 and 14 percent. Most likely, the VAT on food will not be touched.

Iltalehti also reported on Saturday that nuisance taxes will be raised. In practice, it means raising taxes on tobacco and alcohol, among other things. Some kind of health tax is also possible if a working model is found.

There has also been a proposal on the table that the tax-free investment income of foundations and ay-movement would be taxed.

The chairmen of the governing parties: Minister of Agriculture and Forestry Sari Essayah (KD), Minister of Finance Riikka Purra (PS), Prime Minister Petteri Orpo (KOK) and Minister of Education Anna-Maja Henriksson held a press conference at the beginning of the framework crisis on Monday. Henri Kärkkäinen

Social security costs are being cut again

The biggest cuts will come to curb the growth of health and social care expenses, the goal has been additional savings of 600–700 million euros in this sector.

This means, among other things, loosening the nurse ratings and increasing service and customer fees in primary health care and special care. The loosening of the care guarantee has also been brought up.

Since the cutting target is two billion euros, the government’s scissors will also hit many other things: the cutting of grants received by organizations has been brought forward, development cooperation appropriations and other costs of immigration have been interfered with again, vocational training may be shortened and so on.