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Finance Minister favours mix of cuts and taxes

Finance Minister Jutta Urpilainen said on Saturday that she favours an even mix of spending cuts and higher taxes in order to balance out public finances.

Jutta Urpilainen.
SDP:n puheenjohtaja ja valtiovarainministeri Jutta Urpilainen piti poliittisen tilannekatsauksen SDP:n puoluevaltuuston kokouksessa Helsingissä lauantaina. Image: Sari Gustafsson / Lehtikuva

In a situation report to her Social Democratic Party council on Saturday, Urpilainen called half savings and half tax increases a suitable recipe for dealing with state finances right now.

"Then everyone would be taking part in the venture and the ability to pay could be taken into consideration. It's worthwhile holding to this policy when the government examines the budget framework," Urpilainen told the gathering.

The SDP leader, who also holds the finance portfolio, defended an avoidance of radical spending cuts. Her view is that large cuts debated a year ago would have also dampened economic growth. She pointed out that elsewhere massive state spending cuts have extended the recession and led to serious unemployment.

"The fanatic spending-cutters have crawled back into their holes. Increasing numbers of economists, in Finland and elsewhere, say that an overall balance of growth and economic policy is what's needed," said Urpilainen.

Sources: Yle