The Finnish Government has concluded negotiations for the supplementary budget for 2015 and this will be forwarded to parliament for approval on 12 Feb, 2015. Economic growth is expected to remain sluggish in the current year but growth will be supported by a gradual recovery of exports and measures to kick-start investments.

A summary of supplementary budget 2015 is as follows:

  •  The unemployment rate is forecast to rise to 8.8 percent even though employment will rise by 0.1 percent compared to the previous year.
  • The government will invest in infrastructure, employment and entrepreneurship. In addition, the government has decided to invest approximately 280 million euros to boost growth and employment and this will need an additional appropriation of approximately 80 million euros for 2015. An additional six million euros was allocated to the development of quality education in 2015 returning the appropriation to the level of the draft budget.
  • The government has also decided to submit a bill to parliament during this parliamentary term to amend the VAT Act in such a way that from the beginning of 2016 the threshold for VAT registration will rise to 10,000 Euros and the personal tax allowance will rise to 30,000 Euros.
  • The current minimum threshold for VAT is 8,500 Euros while the personal tax allowance is 22,500 Euros.
  • The government has also proposed that inheritance and gift tax generations relief provisions be amended so that the payment period would be extended from five to seven years.