Government submits second supplementary budget proposal for 2026 to Parliament

The Government submitted its second supplementary budget proposal for 2026 to Parliament on 3 June. The supplementary budget includes employment measures outlined in the spending limits session and investments in counter-drone capabilities and defence more broadly. The proposal also includes an increase to revenue estimates.

In the second supplementary budget proposal for 2026, the appropriation requirement will increase by EUR 420 million, while actual revenue will increase by EUR 131 million. Together, these will increase the central government’s net borrowing requirement by EUR 289 million.  

Net borrowing in 2026 is expected to total nearly EUR 11.1 billion. The deficit is being reduced by entering the remaining cash receipts of the National Housing Fund, which was dissolved on 1 January 2026, as revenue in the Budget. This will not reduce central government borrowing. Excluding this non-recurring item of EUR 2.3 billion being entered as revenue, the deficit is EUR 13.4 billion.  

Employment measures outlined in spending limits session to target young people and long-term unemployed

A total appropriation of EUR 20 million is proposed for the youth employment subsidy. The appropriation would be enough to employ at least 3,300 unemployed young people. EUR 15 million is proposed for pilots aimed at preventing youth unemployment. EUR 4 million is proposed for the additional recruitment of summer workers and trainees in central government.

In addition, a total of EUR 20 million is proposed to cover the costs arising from the competence voucher for long-term unemployed people.

Additional investments in counter-drone capabilities, defence and support for Ukraine

EUR 44 million in additional funding is proposed for the Border Guard and EUR 6.2 million for the police to strengthen counter-drone capabilities. A further EUR 170,000 is proposed for the Border Guard’s UXV30 project, which was set up for the procurement and introduction of unmanned surveillance systems.

EUR 25 million in additional funding is proposed for the Finnish Defence Forces for maintaining materiel and equipping troops. An increase of EUR 2 million is proposed to improve the Ministry of Defence's ability to operate in the evolving security environment and to cover the need for additional resources arising from NATO membership. This increase would be covered by a transfer from the operating expenditure of the Finnish Defence Forces.

The proposals include an approximately EUR 1,057 million increase to the maximum amount of the 2026 procurement authority for defence materiel (PVKEH 2026) to be used for defence materiel procurements in 2026–2032. EUR 562 million of the payments allocated to the increased procurement authority for 2026–2028 will be covered using appropriations previously granted to the branch of government. EUR 18.3 million is proposed as support for the domestic defence industry. This involves the cancellation and rebudgeting of an appropriation that was previously budgeted for the procurement of defence materiel.

Additional funding of EUR 44.3 million is proposed for participation in initiatives supporting Ukraine. The Government also proposes increasing the procurement authority for procurements from domestic industry to meet Ukraine’s needs (UKR 2024) by EUR 50 million, which would increase the 2026 appropriation for defence materiel procurement by a corresponding amount. The Government proposes a EUR 96.8 million increase to the Defence Forces’ procurement authority for supporting Ukraine (UKR 2023), which is intended to replace defence materiel supplied to Ukraine as part of the 31st aid package to Ukraine. The related payments are scheduled to take place in 2028. In addition, an increase of EUR 5.7 million is proposed for the Finnish Defence Forces to cover the costs of training and materiel support to Ukraine. 

New transport projects to be launched and budget authorities for previously decided projects to be increased

The Government proposes funding the following new projects under its investment programme:

• A budget authority of EUR 15 million and an appropriation of EUR 1 million are proposed for the deepening of the Vaasa fairway.
• A budget authority of EUR 8 million and an appropriation of EUR 0.8 million are proposed for the electrification of the Vaasa port railway.
• An appropriation of EUR 5.2 million is proposed for basic transport infrastructure management relating to the improvement of main road 6 at Tolosenmäki in Kitee.
• An appropriation of EUR 1.2 million is proposed for basic transport infrastructure management relating to the improvement of the Tähtelä junction in Inkoo. The objective is to boost investments in the Inkoo region.

In addition, the Government proposes adjusting the budget authorities already granted for projects under its investment programme as follows:

• The budget authority for the re-routing project of the Turku port railway is proposed to be increased by EUR 8 million to EUR 19 million.
• The budget authority for the Oulu passenger rail yard project is proposed to be increased by EUR 9.6 million to EUR 34.1 million.
• The budget authority for the main road 8 Edsevö–Lepplax project is proposed to be increased by EUR 2.2 million to EUR 26.2 million.

The Government proposes funding other new transport projects as follows:

• A budget authority of EUR 20.8 million and an appropriation of EUR 10 million are proposed for the main road 6 Keltti bridge project in Kouvola.
• A budget authority of EUR 12.6 million and an appropriation of EUR 0.3 million are proposed for the main road 9 Vartiala–Riistavesi Kivisalmi bridge project in Kuopio.
• An appropriation of EUR 3.3 million is proposed for basic transport infrastructure management relating to the refurbishment of the Tengeliönjoki bridges on main road 21.
• An appropriation of EUR 1 million is proposed for basic transport infrastructure management relating to the refurbishment of the Karigasniemi bridges on main road 92.    

Increases are also proposed to the budget authorities for several transport projects that were previously decided. The need for additional appropriations would be partially covered using saved appropriations from other projects. 

Appropriation increases related to immigration

An increase of EUR 4.2 million is proposed for the Finnish Immigration Service’s operational expenditure to fund the project to prepare amendments to the Citizenship Act. EUR 2 million is proposed to cover non-recurring costs relating to the amendment of the Aliens Act. In addition, EUR 1.5 million is proposed to cover expenditure relating to removal from the country and transfers.

An appropriation increase of EUR 82 million is proposed for the reception of refugees and asylum seekers and for allowances payable to clients of reception services. The increase of the estimated appropriation needs is caused by an updated immigration forecast and the related increase in the projected number of people in the reception system.

Other changes

In addition to the reception expenditure mentioned above, the supplementary budget proposal also includes several other specifications to the needs assessments for appropriations. For example, the estimate for interest costs associated with taxes will be increased by EUR 77.5 million, while a decrease of EUR 69 million is proposed for production support for renewable energy due to changes in the market price of electricity.

A total of EUR 4.7 million is proposed for courts of law and EUR 2.2 million for the National Prosecution Authority to reduce backlog. The resources needed for the administration of justice and their proportionality are being assessed in more detail in the Government Report on the Administration of Justice, which is currently under preparation. In addition, the Government is launching an external evaluation of the sufficiency and allocation of resources for the administration of justice, which will be completed by the end of the year. The external evaluation will be coordinated with the preparation of the Government Report on the Administration of Justice and its results will complement those of the Government’s report.

A guarantee authority of EUR 58.5 million is proposed for the Finnish Museum of Architecture and Design.

An appropriation of approximately EUR 7.6 million is proposed for the renovation of the dry sprinkler system and copper roof of the main building of the Finnish National Theatre.

An appropriation of EUR 2 million is proposed for the Olympic Fund as co-financing corresponding to the private funds it has raised.

An increase of EUR 4.4 million is proposed to compensation for damages caused by predators in order to fully compensate for damages to reindeer caused by large carnivores in 2025.

It is proposed that EUR 227,000 be allocated to the Finnish Wildlife Agency for processing exemption permits for dealing with barnacle geese and great black cormorants and for the necessary changes to information systems resulting from the change in the status of the species to game species that can be hunted as part of conservation hunting in autumn 2026.

EUR 110,000 is proposed to cover the expenditure arising from expanding the area covered by fisheries limitation agreements to protect the Saimaa ringed seal.

A discretionary government grant of approximately EUR 1 million is proposed for the Finnish News Agency (STT) to safeguard the provision of basic news service and develop operations.

An appropriation of EUR 10 million is proposed for the National Emergency Supply Fund for the emergency stockpiling of peat.

EUR 25 million is proposed for subsidies for renovations to improve energy efficiency under the main title of the Ministry of the Environment.

The Government is finalising a proposal to help victims of human trafficking and labour exploitation and ensure adequate resources.

Revenue estimates take into account Ministry of Finance's April forecast

In total, the Government proposes increasing the revenue estimate by EUR 131 million.

With respect to tax revenue, it is proposed that the estimate for value-added tax revenue be increased by EUR 122 million based on the macroeconomic forecast published by the Ministry of Finance in April. The estimate of miscellaneous revenue will be increased by EUR 113 million.

Based on revised accrual data, it is proposed that dividend income and revenue from the sale of assets be reduced by a total of EUR 72 million. While the estimate of dividend income in 2026 will decrease, the sales of shares in Fingrid Corporation will increase income by EUR 62 million. The revenue recognition of the Bank of Finland and Senate Properties will be reduced by a total of EUR 41.4 million, while the revenue recognition of Metsähallitus will be increased by EUR 10 million.

Inquiries: Mikko Martikkala, Special Adviser to the Prime Minister in Economic Affairs, tel. +358 295 161 171, and Jussi Lindgren, Special Adviser to the Minister of Finance, tel. +358 295 530514

The email addresses of the Finnish Government are in the format [email protected]