Finland - Public finance

Budget estimates are prepared by the Ministry of Finance and submitted to the legislature. They are referred to the finance committee and subsequently reported back to the full body. Supplementary budgets are usual.

Finland's budget balance continued its sharp deterioration in 1992, as the deep recession resulted in decreased tax revenues and increased social expenditures. Extensive government support for the fragile banking system and increased interest expenditures were also responsible. The rest of the 1990s, however, proved much more auspicious for the fast-growing Finnish economy. GDP grew 5.6% in 2000, fueled by a booming electronics industry.

The US Central Intelligence Agency (CIA) estimates that in 2000 Finland's central government took in revenues of approximately $36.1 billion and had expenditures of $31 billion. Overall, the government registered a surplus of approximately $5.1 billion. External debt totaled $30 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

REVENUE AND GRANTS	100.0%	36,100
Tax revenue	84.6%	30,553
Non-tax revenue	12.9%	4,640
Capital revenue	0.2%	60
Grants	2.3%	847
EXPENDITURES	98.3%	31,000
General public services	5.6%	1,729
Defense	4.5%	1,386
Public order and safety	3.0%	919
Education	10.4%	3,217
Health	3.3%	1,026
Social security	36.4%	11,280
Housing and community amenities	2.9%	886
Recreation, cultural, and religious affairs	1.0%	322
Economic affairs and services	16.3%	5,062
Other expenditures	3.0%	924
Interest payments	13.7%	4,247