Finland announces large stimulus programme, warns of tax hike, austerity

Finland announces large stimulus programme, warns of tax hike, austerity

The Finnish government has presented a draft supplementary budget with a funding of 5.5 billion euros with investments to overcome the crisis of COVID-19 in a number of areas. It also warned that higher taxes or austerity measures would be inevitable in the coming years.

On June 2, Finnish Prime Minister Sanna Marin’s government presented a record fourth 5.5-billion-euro supplemental budget aimed at helping overcome the damage caused by the coronavirus crisis.

In unveiling the spending package Finnish Finance Minister KatriKulmuni stressed that it would not be possible to avoid tax hikes and reduced spending in the coming years.

“I would like to point out and also to warn that public finances must be strengthened after the crisis. Tax increases or spending cuts cannot be avoided in the years ahead,”Kulmuni noted.

She also told reporters during a press conference that Finland would be borrowing an additional 18.8 billion euros this year to finance its programmes aimed at accelerating growth and making the country stronger after the pandemic.

Pic Credit: https://www.flickr.com/photos/finnishgovernment/49525329542

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