Tehy: Midterm government spending limits discussions must not include more cuts to social and health services – Will PM Petteri Orpo give counties more time to adjust finances? – Taxation should be made fairer 

Tehy, the union of social care, healthcare, and early childhood education professionals, demands that wellbeing services counties get more time in the midterm government spending limits discussions to adjust their finances. Tehy President Millariikka Rytkönen is also wondering why suggestions such as removing the inheritance tax are being brought up amid the pressure to find savings.

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The funding of social and healthcare services and wellbeing services counties is one of the key topics of the midterm government discussions on spending limits. Ideas brought up in advance include more cuts to social and healthcare services, especially due to growing military defence expenses. 

Tehy President Millariikka Rytkönen emphasises that public social and healthcare services are already facing a crisis and additional cuts would endanger residents' constitutional right to good care. 

– It makes no sense that nurses are constantly being dismissed and the wellbeing services counties are holding continuous cooperation negotiations due to the budget cuts. At the same time, we are suffering from a nurse shortage. Indeed, the need for care is not decreasing. This results in a deeper crisis in the social and healthcare sector, longer queues and higher costs that damage the central government finances. 

Increasing defence expenses is understandable in the current international security situation, but covering the defence expenses with cuts to social and healthcare services is not sustainable. Functional social and healthcare services are also a part of overall security and security of supply.

Rytkönen is also puzzled by the contradictory discussions on taxation. 

– In 2023, inheritance and gift taxes yielded about 1.2 billion euros to the government. According to the VATT Institute for Economic Research, removing the inheritance and gift taxes would reduce the government's tax income by 300–400 million euros. It is difficult to understand why the government wants to get rid of such a significant source of income. 

A just central government 

Tehy demands that central government finances be balanced in a more just manner and sustainable long-term funding for essential social and healthcare services be secured. New tax income could be collected from several targets recommended by economy experts.

– For example, ceasing the dividend tax relief for non-listed companies could bring about 430 million euros. In addition, hundreds of millions could be achieved by reforming the taxation of dividend and property earnings of tax-exempt organisations. Business subsidies should also be reviewed critically, says Economist Anni Marttinen, who recently started in Tehy.

Tehy is also demanding that the government spending limits discussions give wellbeing services counties more time to cover their budget deficits. Prime Minister Petteri Orpo said in the election debates held by Helsingin Sanomat and Ilta-Sanomat that ”if it’s necessary, wellbeing services counties will be given more time to fix their finances.”

– The government have previously stated that the counties will not get extra time to adjust their finances. I hope that the government come to their senses and give more time to the counties. We need decisions that ensure people's wellbeing and society's overall security, Rytkönen states. 

Enquiries: 

Tehy President Millariikka Rytkönen, requests for interview through Special Advisor Mila Huovinen, [email protected], tel. +358 (0)400 540 005

Tehy Economist Anni Marttinen, [email protected], tel. +358 (0)40 765 8584