Funding and Green Projects Evaluation
MuniFin
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Finnish municipalities: Strong revenue base and
close link to Central Government
E
By law, a Finnish municipality cannot be declared
bankrupt
•
Bankruptcy Act (120/2004)
Revenues (~EUR 47 billion)
Other
5%
Other Taxes
8%
Borrowing
9%
Income Tax
40%
.
Close link to the central government
•
Highly independent and have a parallel status with the Central
government confirmed in the constitution dating from 1917
Central
government
transfers to
local
government
18%
Large reform in the healthcare sector in process
Sales of
Services
20%
€
Strong revenue base
•
Municipalities have an unlimited right to levy taxes on their
inhabitants (municipal tax rate)
• Other revenues taxation related charges from service production
Budget Control
•
•
Ministry of Finance is responsible for monitoring the municipal sector
By law municipalities have an obligation to balance their finances
over a four-year time frame
Expenditure (~EUR 47 billion)
Financing
costs
6%
Other Duties
15%
Education
and Culture
31%
Social and
Healthcare
48%
Source: Association of Finnish Local and Regional Authorities, 2019View entire presentation