Room for Manoeuvre in Public Finances

Summary

Long-term sustainability is a key issue in assessing the room for manoeuvre in public finances. The next electoral period is crucial in terms of preparing for the impending demographic changes, as most baby boomers are still economically active and the outlook for economic growth is favourable.

A recent evaluation carried out by the Ministry of Finance indicates that Finland's public finances are not placed on a sustainable footing in the long term. The overall assessment suggests that by the end of the decade the surplus in general government finances could prove to be EUR 2 billion smaller than the sustainability criterion would require.

To bridge the sustainability gap, a range of complementary measures is available. The most important aspect is to secure economic growth by raising the employment rate and by lowering structural unemployment.

(The publication is available in Finnish.)

Language versions

• Julkisen talouden liikkumavara
  16.02.2007
• Den offentliga ekonomins spelrum
  16.02.2007

Printable version