Finnish government tightens budget as economy continues to struggle
Wednesday, 07 August 2013
Finnish government has decided to tighten its budget for 2014 compared
to this year. That will means that its total estimated budget in 2014
is now €53.9 billion, down from this year to €54.5 billion.
The goal is to limit debt and keep the country's credit rating, top-level AAA.
The budget deficit in 2014 is estimated at €6.6 billion, down from the deficit of €7.8 billion in 2013.
This comes after Finnish Prime Minister, Jyrki Katainen, says that he
does not support the government incurring further debt in order to aid
economic recovery. Speaking to the national broadcaster Yle, on
Wednesday he did say that it's possible to allocate budgetary resources
in different ways than previously planned. “A small degree of
relief stimulus is possible. For example, mould remediation in schools
can be brought forward,” said Katainen.
He stressed that economic stimulus packages are akin to a drop in the ocean.
“We need to focus
on structural reforms, and savings measures that have already been
made,” he said. "But this is not rocket science. We have already
incurred a debt of 7 to 8 billion euros for next year. There's
absolutely no reason to incur further debt in the name of recovery."
by Scancomark.com Team
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