The Ministry of Finance recently revealed an 88.1-billion-euro budget proposal, which has sparked criticism from the opposition. The proposed budget includes a deficit of 12.2 billion euros and has raised concerns about deepening the economic recession.
Opposition member Minja Koskela criticized the budget for prioritizing cost-saving measures over creating promised jobs and increasing unemployment and debt. Minister of Finance Riikka Purra defended the proposed budget, stating that despite the shortfall, cost-saving targets will not be adjusted.
The budget includes tax hikes, mainly through value-added tax, which has been deemed economically detrimental by Koskela. Trade unions have also expressed concerns about the impact on low-income households and the labour market.
Chief economist Ilkka Kaukoranta highlighted the detrimental effects of reducing purchasing power and slashing education and healthcare spending. The government’s focus on cost cuts instead of growth was also criticized.
The budget proposal has caused tension within the ruling coalition, particularly regarding spending on projects like the high-speed rail link between Helsinki and Turku. Overall, the proposed budget has sparked a debate on the government’s economic policies and priorities.
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