Mon. Jul 22nd, 2024

Helsinki, 29 August 2023

The Ministry of Economic Affairs and Employment proposes appropriations of EUR 4.4 billion for its administrative branch for 2024, which is about EUR 448 million more than in the 2023 budget.

The Ministry proposes a total of EUR 2.3 billion in budget authority. Of the appropriations under the main expenditure title, administration accounts for 23%, regeneration and carbon reduction for 39%, employment and entrepreneurship for 25%, special funding for enterprises 4%, and integration and international skills for 9%.

Employment and entrepreneurship

A total of EUR 1.1 billion is proposed for the set of policies related to employment and entrepreneurship. This is EUR 87 billion more than in the 2023 budget.

The Ministry proposes EUR 189 million for public employment and business services appropriations, which is approximately EUR 32 million less than in the 2023 budget on a net basis. The reduction is mainly due to a decrease in employment appropriations and the termination of business development services, as decided in the Government Programme.

Around EUR 58.5 million is proposed for measures to extend working careers, which represents an increase of EUR 36.5 million compared with the 2023 Budget.

The Ministry proposes that the EU and the central government fund appropriation to financial year would be EUR 644 million to EU regional, structural and other cohesion policy programmes (variable appropriation), which is EUR 31 million more than in the 2023 Budget.

EUR 45 million is proposed as central government compensation to municipalities to cover the costs of changes due to the TE services reform.

A budget authority of EUR 10 million is proposed for supporting regional research, development and innovation activities under the item ‘Support for business development projects’. Funding will be allocated to improve cooperation between higher education institutions and research institutes and companies. In addition, funding will be targeted to support innovation activities of small companies, SMEs operating in value networks and research-based start-ups and to speed up utilisation of existing technologies and new solutions.

Regeneration and carbon reduction

A total of EUR 1.7 billion in appropriations is proposed for the set of policies related to regeneration and carbon reduction, which is EUR 249 million more than in the 2023 budget.

The Ministry proposes EUR 552 million for supporting research, development and innovation activities. This is EUR 87 million more than in the 2023 Budget.

EUR 461 million is proposed for energy subsidies, representing an increase of EUR 97 million from the 2023 Budget.

EUR 150 million is proposed for aid for electrification of energy intensive industry.
This electrification aid compensates the indirect costs caused to the price of electricity from emissions trading in sectors where the risk of carbon leakage is significant. The aid aims to lower the risk of carbon leakage, ensure the cost competitiveness of industry and encourage industrial operators to develop carbon neutral production methods. The operator must use at least 50% of the aid granted for development measures that contribute to making its activities carbon neutral.

A total of EUR 70 million in appropriations and budget authority, divided into budget and spending limits years, is proposed for promoting the application and capability of quantum computing in the Finnish industry.

Preparation of the budget proposal

The Ministry of Finance will publish the entire budget proposal on 28 August. The Ministry of Economic Affairs and Employment will then submit its response to that proposal on 31 August and subsequently, the ministries will hold bilateral negotiations on 5 September.  The government budget session will take place on 19–20 September. The budget proposal and the revised spending limits proposal for 2025–2027 will be submitted to Parliament and published on 9 October.

Source – Finnish Government

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