The public sector means central government, municipalities, wellbeing services counties and social security funds, which include the earnings-related pension institutions. This page goes through the figures, revenue first and then spending. This money pays for pensions, health centre visits and school days. It comes from income taxes, value added tax on purchases and other charges. According to the Ministry of Finance (VM) autumn forecast, the public sector collects about €160bn in 2027 and spends about €174bn.
What is the public sector?
In the national accounts, the public sector means central government, local government and social security funds. Local government covers municipalities and wellbeing services counties; the social security funds include the earnings-related pension institutions and other funds that run social insurance. Parishes are not part of the public sector, so church tax is not in the figures. The central government budget is only one part of the public sector economy.
Because the earnings-related pension institutions are included, earnings-related pension contributions show up in public revenue and earnings-related pensions in public spending.
Where does the public sector’s money come from?
According to forecasts, public sector revenue in 2027 is about €160bn. The largest items are income taxes, about €46bn, social security contributions, about €37bn, and value added tax, about €29bn. Together these three make up about 70% of revenue. The tax ratio in 2027 is forecast at 41.8%.
Select a category to highlight it and see its breakdown.
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- earned and capital income taxes €38.5bn
- corporate income tax €7.7bn
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- earnings-related pension contributions €30.1bn
- health and unemployment insurance contributions €6.7bn
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- energy taxes €4.0bn
- alcohol and tobacco taxes €2.8bn
- vehicle, car and other excise taxes €1.8bn
- real estate tax €2.4bn
- other taxes (insurance premium, inheritance, transfer tax etc.) €4.4bn
- other income €2.0bn
Public revenue in 2027, estimate (total €160.4bn):
- Income taxes €46.2bn, of which earned and capital income taxes €38.5bn and corporate income tax €7.7bn
- Social security contributions €36.8bn, of which earnings-related pension contributions €30.1bn
- Value added tax €28.8bn
- Sales and fee income €19.0bn, such as client fees and sales of services
- Property income €12.2bn, meaning interest and dividends
- Other taxes and income €17.4bn, of which for example energy taxes €4.0bn, alcohol and tobacco taxes €2.8bn and real estate tax €2.4bn
Value added tax is shown gross, before the VAT refunds to municipalities and wellbeing services counties. In the central government budget proposal for 2027, the net figure is about €25bn. The tax ratio is the share of taxes and tax-like payments in gross domestic product.
Where does the public sector’s money go?
According to forecasts, public spending in 2027 is about €174bn. More than half goes to three areas: pensions, about €40bn, health and social services, about €38bn, and education, about €23bn. Other social security takes about €14bn and defence about €7bn.
Select a category to highlight it and see its breakdown.
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- earnings-related pensions €37.6bn
- national and guarantee pensions (Kela) €2.6bn
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- transport €8.9bn
- municipal and regional administration €7.1bn
- interest on debt €6.1bn
- culture, sport and Yle €5.3bn
- research and development €4.8bn
- central government administration €4.3bn
- police, rescue services and courts €4.2bn
- business and employment services €2.8bn
- EU contributions €2.5bn
- agriculture and forestry €2.0bn
- housing, environment and development aid €3.0bn
Public spending in 2027, estimate (total €174.0bn):
- Pensions €40.2bn, of which earnings-related pensions €37.6bn and national and guarantee pensions (Kela) €2.6bn
- Health and social services (sote) €38.2bn
- Education from early childhood education to university €23.2bn
- Other social security €14.4bn
- Defence €7.0bn
- Other spending €51.0bn, of which the largest are transport €8.9bn, municipal and regional administration €7.1bn and interest on debt €6.1bn
Early childhood education is counted under education. Health and social services also include Kela’s reimbursements for medicines, medical care and travel.
How much does the public sector borrow, and what does fiscal adjustment mean?
In 2027 public sector spending exceeds revenue by a forecast €13.7bn, or 4.5% of gross domestic product. The difference is financed with debt. Fiscal adjustment means spending cuts, tax increases or a combination of the two, used to reduce the deficit. According to a preliminary estimate published by the Ministry of Finance in February 2026, the next electoral term requires an adjustment of €8–11bn.
The €8–11bn is about 4.5–6% of estimated public spending in 2027. It is more than defence is estimated to take in 2027 and of the same order as transport spending. Interest on debt is estimated at €6.1bn in 2027, almost as much as defence. According to the Ministry of Finance press release, the final fiscal position target is to be set in a parliamentary process in December 2026. The target is linked to the debt brake.
Interest spending is rising again. After the recession of the 1990s, the public sector paid at most €4.5bn a year in interest, over 7% of all its spending. In the zero-interest year of 2021, interest took €1.3bn, under one percent of spending. In 2024 the sum was €4.4bn, and in 2027 it is an estimated €6.1bn, more than in any year since 1990. As a share of spending that is about 3.5%, roughly half the peak of the 1990s.
- Actual 1990–2024
- Estimate 2027
Figures as a table
| Year | Interest | Share of spending |
|---|---|---|
| 1990 | €1.3bn | 2.9% |
| 1991 | €1.6bn | 3.2% |
| 1992 | €2.1bn | 4.0% |
| 1993 | €3.7bn | 6.7% |
| 1994 | €3.7bn | 6.4% |
| 1995 | €3.8bn | 6.3% |
| 1996 | €4.2bn | 6.8% |
| 1997 | €4.5bn | 7.3% |
| 1998 | €4.1bn | 6.5% |
| 1999 | €3.7bn | 5.7% |
| 2000 | €3.7bn | 5.7% |
| 2001 | €3.7bn | 5.4% |
| 2002 | €3.0bn | 4.2% |
| 2003 | €2.8bn | 3.7% |
| 2004 | €2.7bn | 3.5% |
| 2005 | €2.7bn | 3.3% |
| 2006 | €2.6bn | 3.1% |
| 2007 | €2.7bn | 3.1% |
| 2008 | €2.7bn | 2.9% |
| 2009 | €2.4bn | 2.5% |
| 2010 | €2.6bn | 2.6% |
| 2011 | €2.9bn | 2.8% |
| 2012 | €3.1bn | 2.7% |
| 2013 | €2.8bn | 2.4% |
| 2014 | €2.7bn | 2.3% |
| 2015 | €2.6bn | 2.2% |
| 2016 | €2.5bn | 2.1% |
| 2017 | €2.4bn | 2.0% |
| 2018 | €2.3bn | 1.9% |
| 2019 | €2.0bn | 1.6% |
| 2020 | €1.6bn | 1.2% |
| 2021 | €1.3bn | 0.9% |
| 2022 | €1.5bn | 1.1% |
| 2023 | €3.2bn | 2.1% |
| 2024 | €4.4bn | 2.7% |
| 2027 (estimate) | €6.1bn | 3.5% |
The adjustment is worth discussing on the basis of these figures. The question is where the money comes from: spending cuts, taxes or both.
Where do the figures come from?
The headline figures are from the Ministry of Finance autumn 2026 Economic Survey (Taloudellinen katsaus). The more detailed split of revenue and spending for 2027 is an estimate built on official figures, such as the Statistics Finland national accounts and the central government budget proposal. It is not taken directly from official sources. The figures follow the general government (S13) definition and do not include parishes.
The spending split is based on Statistics Finland’s preliminary 2024 data by function (COFOG), scaled up to the 2027 level. The deficit of €13.7bn is the Ministry of Finance’s own figure. Calculated from the figures with one decimal, the difference is €13.6bn because of rounding. The interest chart’s years 1990–2024 are from Statistics Finland table 12a6 (general government consolidated property expenditure, in practice interest), and the 2027 figure is the estimate described above.
- Valtiovarainministeriö: Taloudellinen katsaus, syksy 2026 (Ministry of Finance: Economic Survey, autumn 2026), tables 16 and 17
- Valtiovarainministeriön tiedote 27.2.2026: Seuraavan vaalikauden sopeutustavoite on vaativa mutta täysin mahdollinen saavuttaa (Ministry of Finance press release, 27 February 2026, in Finnish)
- Tilastokeskus: julkisyhteisöjen menot tehtävittäin, taulukko 12a6 (Statistics Finland: general government expenditure by function, table 12a6)
- Tilastokeskus: kansantalouden tilinpito, taulukko 15aj (Statistics Finland: national accounts, table 15aj, taxes)
- Tilastokeskus: kansantalouden tilinpito, taulukko 15ah (Statistics Finland: national accounts, table 15ah, property income)
Cover photo: “Parliament House, Helsinki”, Radosław Botev, CC BY 3.0, modified.
Frequently asked questions
What is the public sector?
In the national accounts, the public sector, or general government, means central government, local government and social security funds. Local government covers municipalities and wellbeing services counties; social security funds include the earnings-related pension institutions and other funds that run social insurance. Parishes are not part of the public sector, so church tax is not in the figures. The central government budget is only one part of the public sector economy.
Where does the public sector's money come from?
According to forecasts, public sector revenue in 2027 is about €160bn. The largest items are income taxes, about €46bn, social security contributions, about €37bn, and value added tax, about €29bn. Together these three make up about 70% of revenue. The tax ratio in 2027 is forecast at 41.8%.
Where does the public sector's money go?
According to forecasts, public spending in 2027 is about €174bn. More than half goes to three areas: pensions, about €40bn, health and social services, about €38bn, and education, about €23bn. Other social security takes about €14bn and defence about €7bn.
How much does the public sector borrow, and what does fiscal adjustment mean?
In 2027 public sector spending exceeds revenue by a forecast €13.7bn, or 4.5% of gross domestic product. The difference is financed with debt. Fiscal adjustment means spending cuts, tax increases or a combination of the two, used to reduce the deficit. According to a preliminary estimate published by the Ministry of Finance in February 2026, the next electoral term requires an adjustment of €8–11bn.
Where do the figures come from?
The headline figures are from the Ministry of Finance autumn 2026 Economic Survey (Taloudellinen katsaus). The more detailed split of revenue and spending for 2027 is an estimate built on official figures, such as the Statistics Finland national accounts and the central government budget proposal. It is not taken directly from official sources. The figures follow the general government (S13) definition and do not include parishes.
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