No end in sight to budget deficit ‎

 On Tuesday Minister of Finance Jutta Urpilainen (SDP) presented the main features of the government’s budget proposal, which includes a deficit of EUR 6.6 billion. The deficit is to be covered through borrowing.      In Urpilainen’s view the greatest problem will continue to be the international economic situation. "There is uncertainty also in places outside of Europe", Urpilainen said at a press conference on Tuesday.      Next year’s budget is to follow the lines of the budget frames that were set by the government earlier this year. No further spending cuts are expected.      Things could change next spring, when the government re-examines the goals that it has set for itself. One of the government’s aims is to reduce the amount of state debt as a proportion of total output, and to bring down the deficit to less than one per cent by 2015.

Financial Year

      If the goals prove to be beyond reach, then the government is committed to tightening its belt. Urpilainen says that the debt issue is largely under control, but the same cannot be said about the deficit in relation to total output.

Budget Deficit

      Asked if the situation might lead to further spending cuts, Urpilainen said that there is so much uncertainty that nobody can say what will happen six months ahead.      Prime Minister Jyrki Katainen (Nat. Coalition Party) warns against making any hasty decisions, but he mentions the possibility of further adaptation to possible bad situations.      He says that in the framework talks next spring the government will examine whether or not the measures that have been taken will prove sufficient.      "I hope that they will be enough. If not, we will have to take new measures to adapt", Katainen said to Helsingin Sanomat.