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Fri, 20 Jun, 2014 12:09:15 AM
1.1b euro stimulus package taken till 2018
Tax to support low-income families with children
FTimes-STT Report, June 20
 
Leaders of the ruling Parties at a press conference in Helsinki on Thursday. Photo – Lehtikuva.
The three-day “mini-government” negotiations between the ruling parties wrapped up on Thursday evening announcing a 1.1 billion euro economic stimulus package till 2018.
 
Leaders of the five-party coalition government held a joint press conference in the evening presided over by prime minister-designate Alexander Stubb who announced that the parties had reached an understanding on the government programme.
 
In an attempt to promote economic growth and create employment, a five-year stimulus package totalling 1.1 billion euros up to 2018 has been agreed by the parties. Of the amount, tax relief will account for 410 million euros. In the previous negotiations during the budget framework and spending-limit talks back in March, a 600 million euro stimulus package was agreed on.
 
Major decisions regarding implementation of the structural reform were reached in the talks, Stubb told the press conference.
 
The government will stick by the plans to curb the state debt and maintain the spending limit for the period up to 2018. As in the previous briefing to the press, Stubb reiterated that the talks had been amicable and the decisions reached were of benefit to the nation.
 
The five ruling parties also agreed to bankroll various major infrastructure and development projects in Helsinki, Espoo and Turku.
 
SDP Chairman Antti Rinne and leader of the negotiations Alexander Stubb, also chief of the Kokoomus. Photo – Lehtikuva.
Sizable funding will go towards projects like the City Rail Loop in Helsinki, the metro line to the west of the Helsinki metropolitan area and tramline construction in Tampere.
 
A number of measures will be introduced in the housing market to stimulate construction and the need to set up a construction company by the state, the municipal sector and the private sector will be evaluated, said an official press release.
 
The government will not introduce a windfall profit tax, and the 50 per cent deductibility of companies’ representation expenses will be brought back to increase jobs as of the beginning of 2015, according to a statement released by the government. 
 
To promote domestic demand, household purchasing power and employment prospects, full adjustments for earning levels and inflation will be introduced in the three lowest-income brackets in the taxation of pensions and earned income, said the statement.
 
Low-income families with children will be supported through changes in the tax deduction system with an annual cost impact of 70 million euros.
 
 
 
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