The budget proposal drafted by Finance Minister Riikka Purra (Finns) is looking to find about one billion euros in state savings.
Preliminary budget talks for Finland’s 2026 fiscal year, led by Finance Minister Riikka Purra (Finns), propose making around one billion euros in cuts — including a freeze on university funding and ending Finland’s refugee quota programme alongside a significant increase in defence spending.
Preliminary talks on Finland’s 2026 state budget began this week ahead of final negotiations on the budget in early September, when the entire government convenes for its annual budget session.
Here are some of the key cost-cutting measures in the Finance Minister’s proposal:
Uni funding freeze and agency merger
One of the biggest surprises to emerge in the draft budget is a proposal to abolish the Finnish National Agency for Education and transfer its functions to the Ministry of Education and Culture.
Purra is also proposing a freeze on the university funding index, which is currently tied to wage and consumer prices. The freeze would remain in effect for the rest of the government’s term, cutting university funding by 59 million next year and 112 million the year after.
No refugees
Minister Purra also wants to end Finland’s quota refugee programme. Currently, the country accepts 500 quota refugees annually.
Under the draft budget, development cooperation would be cut by over 100 million euros next year. The reduction includes direct aid, development loans, and reversing a planned increase in humanitarian disaster relief.
Integration compensation paid to municipalities and wellbeing service counties for hosting refugees would also be abolished.
Cuts to arts, culture, sports — and cruise ships
State subsidies for associations and foundations are set to be cut by an additional 100 million euros. Funding for arts, culture and sports would also be reduced under the Finance Ministry’s proposal.
Purra also suggests cutting 150 million euros from state contributions to basic municipal services.
Another savings measure targets the Finnish ferry industry, with Purra proposing cuts to broad business subsidies granted to cruise ships. Under the plan, service staff on cruise liners would be excluded from wage support currently provided for ship crews.
Reducing Kela reimbursements for visits to private doctors is also on the table.
The new budget plans won’t bring any tax hikes — but tax cuts are not planned either. That said, income taxes are set to get a bit lighter next year, following the spring budget talks.
The Finance Ministry is meanwhile backing up defence funding, with Purra proposing three billion euros in new authorisation for defence equipment purchases, a sixfold increase over current levels.
