Ministry of Education and Culture proposal for the 2023 Budget

For the 2023 budget proposal, the Ministry of Education and Culture proposes an appropriation of EUR 7.6 billion for its branch of government, which is EUR 175 million more than in the 2022 Budget.

The draft budget of the Ministry of Education and Culture was prepared in the spring, and was published on 5 August after the Ministry of Finance submitted its draft budget. The 2023 budget proposal for the whole of government will be decided in the government budget session over the period of 31 August to 1 September 2022.

Early childhood education and care, pre-primary, primary, lower secondary and liberal adult education

The national binding model whereby school communities work collaboratively will become an established system. The system helps prevent school absenteeism and supports early intervention. Owing to the war in Ukraine, more resources will be allocated to early childhood education and care, studies preparing immigrants for primary and lower secondary education, and liberal adult education. EUR 60 million is proposed for additional expenditure on early childhood education and care and EUR 120 million for additional expenditure on preparing immigrants for primary and lower secondary education.

Vocational education and training and general upper secondary education

The gradual implementation of the extension of compulsory education and free upper secondary education will continue, with EUR 102 million being allocated for this purpose at the 2023 level. From 2023 onwards, a proposed permanent sum of EUR 50 million is intended for strengthening the financing base of vocational education and training. To respond to the staffing level for nurses, EUR 30 million is proposed for the training of new practical nurses and EUR 5 million for a trial to restructure the training compensation for apprenticeship training.

Continuous learning

An increase of EUR 35 million is proposed for the Centre for Continuing Learning and Employment to respond especially to the increased educational needs of immigrants.

Higher education and research

The Ministry proposes that EUR 3.499 million be allocated for tertiary education tuition and for research, which is EUR 44.4 million more than in the 2022 Budget.

A budget authority amounting to EUR 432.3 million is proposed for the research projects of the Academy of Finland, including a budget authority of EUR 9.5 million in accordance with the Recovery and Resilience Plan. As part of the package of central government investments in research and development, an increase of EUR 56.5 million in the budget authority for research projects by the Academy of Finland is proposed from 2023 onwards. In addition, a budget authority of EUR 10 million is added for national co-financing of EuroHPC operations in 2023.

The Ministry proposes an increase of EUR 7.5 million for CSC research infrastructure funding. An increase of EUR 15 million is proposed from 2023 onwards for boosting the research and development activities of universities of applied sciences. It is proposed that core funding for higher education institutions be increased by EUR 94.5 million in line with rising costs. Extensive utilisation and openness of research materials, research results and expertise will be promoted. In line with an earlier decision, EUR 1.5 million is proposed for the National Archives of Finland for the digitisation of documentary material.

Student financial aid

The Ministry proposes that EUR 749 million be allocated for student financial aid, which is EUR 46 million more than in the 2022 Budget. This is mainly because expenditure for study grants has grown following an increase in the number of recipients of study grants. It is proposed that, starting next year, the thresholds for student income be raised by 50% from the level of 2021. In this connection, the Government will submit to Parliament a proposal for an act amending the Act on Student Financial Aid. The number of beneficiaries of subsidies for school journeys and the need for appropriations will also mount following the extension of compulsory education and introduction of free-of-charge upper secondary education.

Arts and culture

The Ministry proposes to allocate a total of EUR 599 million in appropriations for arts and culture. This is EUR 14 million less than in the 2022 Budget. Altogether EUR 4.6 million of this reduced sum is due to a drop in proceeds from gambling activities and less compensation funding.

Nationally significant cultural construction projects will be promoted. Altogether EUR 4 million is proposed for renovating Turku Cathedral. In addition, an appropriation of EUR 6.7 million is proposed for the renovation and improvement of Suomenlinna real estate property. The Ministry proposes EUR 600,000 for project preparation and planning of the Museum of Architecture and Design and EUR 2 million for the capitalisation of the foundation for the Museum of Architecture and Design.

Central government has made provision to fund the European Capital of Culture 2026 project by a total of EUR 20 million, of which EUR 1.6 million is allocated for 2023.

The appropriation for compensating for the reproduction of works for private use will remain at the 2022 level at EUR 11 million.

Ecclesiastical matters

The Ministry proposes an index adjustment of approximately EUR 2.5 million to the appropriation for the Evangelical-Lutheran Church towards social duties, funeral services, population register matters and the maintenance of buildings and movable property of cultural and historical value. In addition, EUR 300,000 is proposed for improving the security of Jewish parishes and an adjustment of EUR 150,000 for the appropriations of the Finnish Seamen’s Mission.

Sports and physical activity and youth work

Around EUR 150 million is proposed in appropriations for sports and physical activities, which is approximately EUR 2.8 million less than in the 2022 Budget. Physical activity and elite sports will continue to be promoted as outlined in the Government Programme and in the implementation of the Report on Sports Policy.

The Ministry proposes that EUR 75 million be allocated for youth work, which is EUR 6.3 million less than in the 2022 Budget.

In line with earlier decisions, EUR 14.5 million is proposed for recreational activities for children and young people. The Finnish model of recreational activities brings more recreational activities to children’s and young people’s school days. The activities are selected based on the wishes expressed by the students. This promotes the wellbeing, equality and non-discrimination of children and young people.

Other adjustments

A one-off transfer of EUR 3 million will be made from the appropriations left unused in previous years by educational institutions to bridge the sustainability gap in the operating expenditure of the Ministry of Education and Culture and to carry out projects in the sector financed using operating expenditure.

The Ministry proposes an increase of EUR 1.5 million for the operating expenditure of the Finnish National Agency for Education for implementing the literacy project, and an increase of EUR 1.3 million for information and research activities related to compensation for reproduction and other rights of use compensation. In addition, the Ministry proposes an increase of EUR 0.7 million for executing the work of the business and industry committee and secretariat, and an increase of EUR 0.2 million is proposed for producing teaching materials in Saami.

A total of EUR 1.3 million is proposed to be added towards the maintenance and small-scale development costs of the information systems of the Matriculation Examination Board and towards the raised fees of the expert members of the Matriculation Examination Board.

Veikkaus gambling proceeds estimated at EUR 404.4 million

The proceeds of Veikkaus for sports and physical education, science, art and youth work is estimated at EUR 404.4 million. This sum includes an estimated impact of the reduced the lottery tax, EUR 42.4 million.

Moreover, total of EUR 2 million in non-distributed proceeds will be entered as revenue. The drop in revenue will also be offset by a total of EUR 20.2 million, as agreed in the parliamentary procedure. Altogether EUR 118.4 million in budgetary funds is proposed to partially offset the impact that the reduction in proceeds from gambling activities has on the spending limits.

The proposal of the Ministry of Education and Culture for the 2023 Budget is mainly based on the central government spending limits decision set out in the General Government Fiscal Plan for 2023-2026.

The proposal also includes expenditure increases of approximately EUR 115 million that exceed the spending limits and are not included in the General Government Fiscal Plan. The most important increases include an added EUR 35 million for continuous learning and an increase of approximately EUR 5 million for expenditure increases of the Finnish National Agency for Education and the Matriculation Examination Board, for example for the implementation of the literacy project and information system expenditures. A total of EUR 10 million exceeding the spending limits is proposed for reinforcing the R&D activities of universities of applied sciences.

The Ministry proposes exceeding the spending limits for arts and culture by a total of EUR 15 million to cover, for example, the expenditure of the Governing Body of Suomenlinna and basic improvements of the Suomenlinna Sea Fortress, the renovation of Turku Cathedral, capitalisation of the Museum of Architecture and Design, and index increases in the rents of cultural facilities.

In addition, the ministry’s budget proposal includes technical and statutory spending limits increases. They relate to, for example, the impact of the change in the estimate of the number of students in general upper secondary education and to more accurate information on the effects of higher education institutions’ VAT compensation and index increases, which will total approximately EUR 60 million.

Ministry of Finance draft budget for 2023 (in Finnish)

2023 draft budget of the Ministry of Education and Culture (PDF, in Finnish)

More information

• Anita Lehikoinen, Permanent Secretary, tel. +358 295 330 182
• Eeva-Riitta Pirhonen, Director General (basic education, early childhood education and care, liberal adult education), tel. +358 295 330 258
• Petri Lempinen, Director General (vocational education and training, general upper secondary education), tel. + 358 295 330 180
• Atte Jääskeläinen, Director General, (higher education and science), tel. +358 295 330 309
• Riitta Kaivosoja, Director General (culture and arts policy and basic education in the arts), tel. +358 295 330 129
• Esko Ranto, Director General (youth and sport policy, student financial aid), tel. +358 295 330 115
• Pasi Rentola, Director of Finance (general financial planning), tel. +358 295 330 211
• Timo Ertola, Ministerial Adviser (general financial planning), tel. +358 295 330 083