Political Economy


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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.Finland economy

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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