Main / Municipal affairs
According to the Finnish Constitution, the municipalities have a dual function. Firstly, they function as the basic
regional administrative units of our country, and secondly, as the basic units of the self-government of the citizens.
In Finland, the municipalities have a long tradition of self-government, and thus, the municipal system provides an
important arena for political participation. In addition, the municipalities play a central role in society through
organising most of the welfare services.
Within central state administration, municipal affairs are covered by several ministries. The Ministry of Finance has
the responsibility for the development of municipal legislation and administration, calculations and analyses relating
to local government finances and the promotion of functioning cooperation between the State and municipalities. The
Ministry of Finance handles municipal tax matters, such as calculating the shares of corporate tax.
The Ministry of Justice is responsible for developing, preparing and implementing legislation concerning the municipal
election and referendum procedure. The Ministry of the Environment, the Ministry of Transport and Communications as
well as The Ministry of Employment and Industries develop and carry out tasks related to municipal infrastructure
and develop and implement related legislation. The Ministry of Education and the Ministry of Social Affairs and Health
develop basic municipal services and related legislation and handle central government transfers concerning these
services.
Ministry of Finance P.O BOX 28 FIN-00023 GOVERNMENT Tel. +358 9 160 01 E-mail: valtiovarainministerio@vm.fi