Finance Minister Riikka Purra (Finns) on Friday afternoon presented the right-wing government's proposed budget plan for next year under what she described as challenging economic circumstances.
"If we want to keep our Nordic welfare model, we need to pay attention to our differences [from the other Nordic countries]," Purra said at the outset of the presentation.
Petteri Orpo's (NCP) government has set itself a target of making six billion euros worth of adjustments to the Finnish economy during this term in office, a figure based on a Finance Ministry report published last year.
Purra said next year the state faces expenditure of 87 billion euros with revenue projected to reach 77 billion.
This means a budget deficit of about 10 billion euros, which will be financed by taking on additional central government debt, Purra told reporters on Friday.
Purra's Finns Party, the second largest political party in Finland, was voted into office on promises of fiscal austerity, having scored political points by taking aim at borrowing by the previous SDP-led administration.
On Friday she said that the Finnish economy was being impacted by Russia's war in Ukraine combined with the long-term effects of rising interest rates.
Purra explained that the government planned to reduce spending during its term in office, for example by making cuts to social and healthcare services and to social welfare benefits.
She also highlighted savings targets in sectors including development cooperation, immigration and government administration.
At Friday's press briefing, Purra said the government would be introducing additional spending cuts annually throughout its term in office.
She also noted that the government would aim to improve the employment situation through measures such as cuts to unemployment benefits and the housing allowance.
The government does not want to increase the overall tax burden, Purra added, saying that the government's tax policy aims to improve purchasing power, strengthen labour and entrepreneurship, promote domestic ownership and enhance the conditions for economic growth.
The four parties making up Finland's coalition government will debate the budget proposal at meetings scheduled for 19 and 20 September.
Once agreement is reached between the governing parties, the proposal will be presented to parliament.
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