Finland’s government unveiled details of its 2012 budget proposal on the 19 September 2011. The budget incorporated fiscal measures aimed at shifting the focus of taxation away from labour and entrepreneurship, towards environmental and health-based taxation. The budget proposed for cuts in expenditure of around EUR1.1bn.
According to the proposed budget taxes on earned income and corporate income will be eased the most. On the other hand, excise duties, especially those on energy, passenger cars and alcohol and tobacco, will become heavier. The government expects that the fiscal adjustment measures specified in this proposal will improve the central government’s budgetary position next year. However, the deficit in central government finances will remain at over 3% of GDP.
The country’s third supplementary budget for 2011 is to be submitted to parliament on September 30, and the budget proposal for 2012, together with the revised spending limits for 2012-2015 will be presented on October 5.
