Budget proposal
Budget proposal for the Ministry of Economic Affairs and Employment’s administrative branch for 2025

The Ministry of Economic Affairs and Employment proposes appropriations of approximately EUR 3.7 billion for its administrative branch for 2025. Additional investments would be allocated to support research, development and innovation activities, in particular. On the other hand, the transfer of TE services to municipalities will reduce the need for appropriations.

Highlights from the Ministry’s budget proposal

According to the parliamentary policy and the Government’s spending limits decision made in the spring, central government research and development expenditure will be gradually increased to 1.2% of GDP. In the budget proposal of the Ministry of Economic Affairs and Employment, the budget authority to support research, development and innovation activities would be raised to EUR 531 million. This includes an increase of EUR 85 million to the budget authority for R&D funding.

The appropriations for administration and for employment and entrepreneurship would be reduced. The reductions are largely driven by the transfer of public employment services to municipalities on 1 January 2025.  According to the proposal, the appropriations for employment and entrepreneurship would total EUR 689 million, which is EUR 309 million less than in the 2024 Budget. Around EUR 754 million is proposed in appropriations for administration, which is approximately EUR 249 million less than in the 2024 Budget.

The Ministry has proposed appropriations of EUR 503 million for integration and international skills. The need for appropriations has grown because the number of persons with a municipality of residence receiving temporary protection is estimated to increase. On the other hand, the need for appropriations is reduced by the Government’s proposal to shorten the imputed reimbursement period for social assistance costs from three years to one year.

Consideration of the budget proposal to continue in September

All ministries submitted their budget proposals to the Ministry of Finance in May 2024. These proposals from the ministries became public on 9 August, when the Ministry of Finance published its budget proposal for Finland.

The Government will discuss the budget proposal in its budget session on 3–4 September. The Ministry of Finance will then finalise the Government’s budget proposal, which will be submitted to Parliament on 23 September. Parliament will approve the Budget in December.

Inquiries:
Jukka Nummikoski, Director, Ministry of Economic Affairs and Employment, tel. +358 295 047 333, firstname.lastname(at)gov.fi