Prime Minister Antti Rinne (the SDP) and Finance Minister Mika Lintilä (the Centre) presenting the 2020 budget plan at the House of the Estates in Helsinki on September 17, 2019. Picture: Tony Öhberg for Finland Today

After spending most of the day at the House of the Estates, the government was able to wrap their budget negotiations in one day late on Tuesday evening.

Here we list 10 points of the 2020 budget proposal that could affect our readers.



The end of active employment model

The active employment model is going to get the last nail to its coffin. The model will be canceled on January 1, 2020. More about the model here (for Premium subscribers).


Students with underaged children will receive an increase of 25 euros to their student grant.

Single parents

The child benefit for single parents will be increased by 10 euros a month.

Higher education

Institutes of higher education will receive an increase in basic funding worth 60 million euros.

Katri Kulmuni, the minister of economic affair (the Centre), Mari Ohisalo, the minister of the interior (The Green League), Anna-Maja Henriksson, the minister of the justice (the SPP), listening to Finance Minister Lintilä’s presentation. Picture: Tony Öhberg for Finland Today

Refugee quota

The refugee quota will be increased by 100 persons in a year. Currently, the quota is 750 refugees a year.


There will be an increase in pensions. The lower the pension, the bigger the increase. For example, a monthly pension lower than 1,000 euros will receive an increase of 31 to 50 euros net in a month.

Fuel taxes

Fuel taxes of motor vehicles will be raised by 250 million euros. According to the calculations of Taxpayers Association of Finland, the prices of gasoline and diesel are going to increase 6.5 cents per liter.

Domestic help

The tax credit for domestic help will be lowered from 2,400 euros to 2,250 euros. The tax credit for domestic help is a tax deduction scheme whereby the householder pays remuneration to a formal private sector company for services such as cleaning or home repairs, or for the care of an elderly person or a child in the home.

Tobacco and soft drinks

Tobacco taxes will be raised by 50 million euros. The taxes for soft drinks will be increased by 25 million euros. According to the calculations of Taxpayers Association of Finland, the price of a package of cigarettes will be increased by 1.80 euros; one and a half-liter bottle of soft drink will cost about 10 cents more.

Business subsidies

The business subsidies regarding products that are harmful to environment and climate will be cut significantly.

The government is aiming to boost businesses by increasing the subsidies of the public funding agency, Business Finland, by 33 million euros in 2020-2022 and by 43 million euros in 2023. The idea is to motivate companies to create innovations and new businesses.