Budget proposal for the Ministry of Economic Affairs and Employment’s administrative branch for 2026

The Ministry of Economic Affairs and Employment proposes appropriations of approximately EUR 3.49 billion for its administrative branch for 2026. This is EUR 179 million less than in the 2025 Budget.

Regeneration and carbon reduction

An appropriation totalling EUR 1.67 billion is proposed for regeneration and carbon reduction, which is EUR 68 million more than in the 2025 Budget.

Central government research and development expenditure will be gradually increased to 1.2 per cent of GDP by 2030. The budget authority to support research, development and innovation activities is proposed to be raised to EUR 658 million. This includes an increase of over EUR 100 million to the budget authority for R&D funding. An increase of EUR 10 million is proposed for the budget authority for the production incentives in the audiovisual sector. It is proposed that EUR 10 million of Business Finland’s budget authority for R&D be allocated to developing new value chains in food production.

In addition, an increase of EUR 7 million is proposed for the voluntary programmes of the European Space Agency (ESA). Under the draft budget, grant authorisations other than those allocated to support R&D activities or the audiovisual sector would be reduced by EUR 12 million.
An increase of EUR 50 million is proposed for the budget authority for energy aid to support large demonstration projects on new energy technology.

Meanwhile, an increase of EUR 30 million is proposed for the budget authority for shipbuilding innovation support. The aim of additional funding is to generate innovations that are new or better than the current world-class innovations in the sector.

Employment and entrepreneurship

The Ministry proposes EUR 655 million in appropriations for employment and entrepreneurship, which is EUR 38 million less than in the 2025 Budget. The decrease is mainly due to a reduction in the appropriation for the EU's regional and structural policy and other cohesion policy programmes. *

With the Economic Development Centres commencing their operations, a funding mechanism will be introduced to promote goal-oriented R&D activities of SMEs. To strengthen the research and development activities of SMEs, a budget authority of EUR 8 million is proposed for an experiment to accelerate the research and development activities of small and medium-sized enterprises.

Special funding for companies

A total of EUR 94 million is proposed as special funding for companies, which is a decrease of EUR 169 million compared with the amount in the 2025 budget.
It is proposed that Finnvera Plc be authorised to compensate for losses of EUR 150 million in export guarantees granted to Ukraine to promote exports and investments to Ukraine.

A capital investment is proposed for Finnish Industry Investment Ltd for a budget authority of EUR 100 million for new funding decisions under the Kasvu direct investment programme.

Integration and international expertise

EUR 352 million is proposed in appropriations for integration and international expertise, which is EUR 33 million less than in the 2025 Budget.

Administration

Around EUR 722 million is proposed in appropriations for administration, which is approximately EUR 7 million less than in the 2025 Budget.

The Ministry proposes an increase to the operating expenses of the Economic Development Centres, which will be launched at the start of 2026, so that regional investment teams can be established in northern and eastern Finland. As part of the establishment of the Economic Development Centres, it is proposed that appropriations corresponding with the operations in question be transferred from the item to the Finnish Supervisory Agency and Traficom.

The draft budget includes a proposal to turn the National Emergency Supply Agency into a government agency and to include its funding in the Budget. 

Consideration of the draft budget to continue in September

The Government will discuss the draft budget during its budget session on 1–2 September. The Ministry of Finance then finalises the Government’s budget proposal, which will be submitted to Parliament on 22 September. Parliament then approves the Budget in December.

Inquiries: Jukka Nummikoski, Director, Ministry of Economic Affairs and Employment, tel. +358 295 047 333, firstname.lastname(at)gov.fi 

* reason for the decrease added to the press release