The central government’s realised borrowing will exceed its budgeted borrowing this year. This is due in part to a EUR 4 billion payment to wellbeing services counties at the start of 2024, which the cash management of the central government is preparing for this year.
The central government’s borrowing will exceed the EUR 11.2 billion net borrowing requirement in the 2023 budget proposal (second supplementary budgetary proposal) by EUR 3.2 billion. The central government’s new borrowing in 2023 will amount to an estimated EUR 14.4 billion.
To safeguard liquidity, the central government’s cash assets will be approximately EUR 4 billion higher at the end of the year than at the same time the previous year. The amount of borrowing will be increased by the payments of approximately EUR 4 billion to wellbeing services counties on 2 January 2024, which are approximately EUR 2 billion higher than the previous year. Due to the early date of the payments, the central government’s cash management must prepare for them this year.
Many factors contribute to the central government’s realised borrowing differing from budgeted borrowing. The use of appropriations typically differs from budgeted, for example, due to deferrable appropriations, which are available for several years. This affects borrowing needs. Detailed information on the reasons for the difference between budgeted and realised borrowing will be available when the final central government accounts are completed.
Inquiries:
Mika Niemelä, Director General of the Budget Department, tel. +358 295 530 525, mika.niemela(at)gov.fi
Sakari Lehtiö, Senior Ministerial Adviser, tel. +358 295 530 439, sakari.lehtio(at)gov.fi
Teppo Koivisto, Director of Finance, tel. +358 295 502 550, teppo.koivisto(at)statetreasury.fi