Feb 18 • 18:43 UTC 🇫🇮 Finland Iltalehti

Editorial: The Next Government Will Face a Major Renovation Ahead

The next Finnish government is set to tackle significant infrastructure reforms amid delays in transportation funding and taxation changes.

Iltalehti has reported on the pressing delays in the comprehensive reform of transportation funding and taxation as highlighted by Prime Minister Petteri Orpo's government program. Led by the Perussuomalaisen Lulu Rantee, the Ministry of Transport and Communications is struggling to address a long-standing issue: the declining revenue from transportation taxes, which has become a central topic of concern due to upcoming fiscal adjustments that the government must undertake to balance its budget.

The looming necessity for budget adjustments is underscored by the assessment from the Ministry of Finance, which indicates that Finland needs to reduce its public finances by an estimated 7 to 12 billion euros in the next election cycle. This challenging task will require careful consideration of both spending cuts and tax measures, highlighting the critical need for structural changes in the revenue system to prevent further economic strain on the state.

Additionally, the situation is compounded by a significant backlog of repairs within the state-owned transport infrastructure. According to the Finnish Transport Infrastructure Agency, the repair backlog for the road network is projected to reach 2.5 billion euros in 2024, while the rail network backlog stands at 1.6 billion euros. The financial health and operational capability of the infrastructure sector thus remain at a crossroads, emphasizing the urgency for the next government to prioritize these issues as part of their strategic planning.

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