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The Ministry of Employment and the Economy’s 2017 budget proposal:
Building conditions for growth

Ministry of Economic Affairs and Employment
12.8.2016 11.06
Press release

The focus of the Ministry of Economic Affairs and Employment 2017 budget proposal is a growth policy that supports the achievement of the Government Programme’s employment and growth objectives. The foundation of the growth policy is successful business activity that innovates, employs and creates wellbeing for Finland.

The Ministry of Economic Affairs and Employment proposes main title appropriations totalling EUR 3,005 million, which is EUR 69 million more than the actual budget for the current year.

Of the main title appropriations, there are significant increases in EU Structural Fund payments (EUR 115 million), municipalities’ integration compensation (EUR 100 million) and support for renewable energy production (EUR 64 million). In addition, the new compensation support for the indirect costs of emissions trading will increase main title expenditure by EUR 43 million.

Key Government project financing for commercialisation of innovations

Business and innovation policy measures will be directed at strengthening conditions for competitiveness and economic growth.

It is proposed that the grant authorisations of Tekes – the Finnish Funding Agency will be EUR 231 million and that its loan authorisations will be EUR 147 million. Tekes’ funding will be directed more strongly at risk-bearing projects aimed at boosting economic restructuring. 

Key Government project financing of EUR 43 million will be allocated in accordance with the Government Programme to implementation of the business and innovation policy, which is EUR 13 million more than in the current year’s budget. Key Government project financing will also be allocated to accelerating cleantech and bioeconomy solutions and to commercialisation of research results.

Number of activation measures will be increased in employment management

The number activation measures in employment management will be increased by expanding the use of unemployment benefits. From the beginning of 2017, appropriations earmarked for unemployment benefits may be used to finance start-up grants, wage subsidies and mobility assistance. Expanding the use of unemployment benefits will better fulfil the service needs of the unemployed.

As a result of the reform, EUR 151 million will be transferred from the appropriation for public employment and business services to the main title of the Ministry of Social Affairs and Health. In addition to the transfer, the level of appropriations will be affected by an earlier EUR 20 million savings decision, a transfer of EUR 7 million to the main title of the Ministry of Education and Culture for immigrants’ basic education and preparatory studies, and a EUR 22 million increase for integration education.

A total of EUR 263 Million is proposed for municipalities’ integration compensation, which is EUR 100 million more than the budget for the current year.

Compensation support for indirect costs of emissions trading to be introduced

In accordance with the Government Programme, the aim is to introduce compensation support for indirect costs of emissions trading, and EUR 43 million has been allocated for this. The new support could be received by energy-intensive sectors, whose electricity costs will increase as the price of emission allowances rises. The introduction of the new support system requires the approval of the EU Commission.

A total of EUR 487 million is proposed for energy policy appropriations, which represents an increase of EUR 104 million compared with the 2016 budget. In addition to the introduction of compensation support, expenditure on support for renewable energy production will grow by EUR 64 million, due to growth of capacity within the scope of the support system and changes in electricity and emission allowance prices. Key Government project financing to support investments in renewable energy and new energy technology will grow by EUR 20 million to EUR 40 million.

Employment-strengthening measures to budget session

The implementation of the employment and entrepreneurship packages decided by the Government in the spring is proceeding according to plan within the agreed appropriation framework. In addition, the Ministry of Economic Affairs and Employment is preparing measures to strengthen employment. Preparations are due to be completed by the Government’s budget session. 

The 2017 budget proposal for the administrative branch of the Ministry of Economic Affairs and Employment delivered to the Ministry of Finance was published on 12 August 2016 when the Ministry of Finance gave its feedback on the ministries’ budget proposals.

Jari Gustafsson, Permanent Secretary, MEE, tel. +358 29 506 3502
Mika Niemelä, Director of Finance, MEE, tel. +358 29 506 2135
Jannika Ranta, Special Adviser to the Minister of Economic Affairs, MEE, tel. +358 29 504 7165
Juha Halttunen, Special Adviser to the Minister of Justice and Employment, MEE, tel. +358 50 574 0236

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