The central government’s financial situation remained difficult, and indebtedness continued in 2023. The year’s expenditures exceeded revenues by EUR 7.4 billion. This figure includes the expenses incurred by the launch of the wellbeing services counties’ activities.
The State Treasury has submitted its proposal for the 2023 State balance sheet to the Ministry of Finance. The final accounts cover on-budget entities.
The proposed final accounts include:
- budget realisation statement
- statement on state returns and expenses
- balance sheet
- cash flow statement
- appendices to the statements.
The final central government accounts are attached to the government’s annual report, which is submitted to Parliament in May.
According to the state budget realisation statement, the surplus for the financial year 2023 was EUR 14.1 billion Budget income amounted to EUR 95.6 billion. Loans taken out using the budget realisation statement were treated as income. In 2023, net borrowing totalled EUR 12.7 billion. In addition, miscellaneous revenues included the cancellation of the transferred but unused EUR 10-billion appropriation1. Budget expenses were EUR 81.6 billion, while the cumulative deficit for the financial year amounted to EUR 5,9 billion.
The launch of the wellbeing services counties was reflected in both tax revenues and payment transfer expenses
According to the central government’s income and expense account, the deficit for last year was EUR 7.4 billion, while the deficit for 2022 was EUR 4.8 billion. Revenues increased by 20% and expenses by 23% from 2022. The increase in income was mainly due to an increase in tax revenue.
The share of payment transfer expenses in expenses was 79 per cent, totalling EUR 61.6 billion, which was approximately EUR 11.4 billion more than in 2022. Payment transfers include revenues and expenses, which do not involve a direct consideration.
The growth in both tax revenues and payment transfer expenses was incurred by the launch of the activities of the wellbeing services counties at the beginning of 2023, as their funding is allocated from the state budget. As a result of this change, the central government’s share of tax revenue increased by about EUR 11.4 billion, central government transfers to municipalities decreased by approximately EUR 8.6 billion, and payment transfer expenses to the wellbeing services counties totalled around EUR 21.5 billion.
In addition to the wellbeing services counties, payment transfer expenses were paid to e.g. social security funds (EUR 14.8 billion) and local government (EUR 6.8 billion).
The increase in financing costs, which amounted to around EUR 1.6 billion, was primarily the result of rising interest rates. Operating expenses increased by approximately EUR 1.5 billion. This was due to the increases in wages and price, as well as increased service and equipment acquisitions.
The central government’s balance sheet increased by 8.5%
The state balance sheet totalled EUR 74.2 billion, which was approximately 8.5% larger than in 2022. The biggest changes in the balance sheet were the changes in central government debt and current assets.
Central government debt according to the balance sheet increased by EUR 13.1 billion to EUR 155.8 billion. Central government debt according to the balance sheet refers to long-term borrowed capital, short-term borrowed capital instalments to be paid in the following financial year, and short-term euro-denominated debts.
The central government’s liquid assets increased by EUR 3.8 billion. This was spurred by the need to amass nearly EUR 4 billion in funding in 2023 for the wellbeing services counties, which was paid on 2 January 2024. The negative equity of on-budget entities was EUR 94.1 billion, representing an increase of EUR 7.4 billion when compared to the previous year. This increase was caused by the deficit.
1Item 422.28.91.80. Loans and guarantees to companies operating in the electricity derivatives market. The appropriation of EUR 10 billion reserved for electricity companies remained unused in its entirety, which increased the accruals to item 12.39.04 Cancellations of transferred appropriations by EUR 10 billion in the final central government accounts for 2023, even though this does not constitute any actual revenue for the state.
The State Treasury’s proposal for the 2023 Final central government accounts > (in Finnish)
Budget realisation, income and expenses and balance sheet >
Also see the visualisations produced for figures in the Final central government accounts >
Further information:
Deputy Director Tanja Wistbacka, State Treasury, tel. +358 295 503 293, tanja.wistbacka(at)valtiokonttori.fi
Accounting Manager Jaana Tiimonen, State Treasury, tel. +358 295 502 261, keskuskirjanpito(at)valtiokonttori.fi
