Wed, 06 Aug, 2014 12:10:56 AM FTimes-STT Report, August 6  Ministry of Finance Antti Rinne is talking to journalists about next year budget proposal on Tuesday. Photo – Lehtikuva. Finance Minister Antti Rinne on Tuesday said there will be no further spending cuts in 2015.
Rinne’s remarks followed the launch of budget talks for 2015 in Helsinki from where the government is expected to announce its budget proposal on Wednesday.
The agreed tax increases and spending cuts will curb the debt spiral significantly, the minister told an afternoon briefing outside the Königstedt Manor where the talks are being held.
The government is expected to reduce the annual state debt next year. The state will take an additional debt of 4 billion euros in 2015 compared to the 8 billion euros borrowed this year.
The regime led by former prime minister Jyrki Katainen and the current government led by Alexander Stubb agreed on a total of 7 billion euros in spending cuts and tax increases.
Much of the agreed measures are expected to be implemented next year. Two billion euros in adjustments agreed during the March spending limits talk is however expected to be implemented in the near future.
Rinne said further measures to tackle unemployment were under consideration in the budget talks.
The challenge here, according to Rinne, is that as unemployment increases the number of vacancies rises, too. The minister, however, did not suggest what could be done to solve the discrepancy.
The overview of the budget is based on the economic outlook up to June, because the possible consequences of the sanctions imposed on Russia are not known yet.
“It may be that the situation tomorrow or next week is completely different. At this moment this is how it seems,” observed Rinne.
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