Productivity programme for the administrative branch of the Ministry of Social Affairs and Health

As outlined in the Programme of Petteri Orpo’s Government, the Government will implement a central government productivity programme to support the Government’s objective for sustainable public finances.

The savings target set for the Ministry of Social Affairs and Health’s administrative branch in line with the productivity programme is EUR 56.6 million by 2027. This is around 7 per cent of the operating expenses of the government agencies and public bodies in the Ministry’s administrative branch in 2024.

The largest single savings target in the administrative branch is the operating costs of the Social Insurance Institution of Finland (Kela). The savings target for these costs is around EUR 34.2 million by 2027. Another significant savings target is the operating expenses of the Finnish Institute for Health and Welfare, with the savings target being EUR 4.8 million.

In general, the Ministry’s administrative branch actively participates in joint central government projects that aim to improve productivity through digitalisation. This means, for example, that digital communications are the primary channel for communications by public authorities. In addition, as part of the productivity programme, a public sector premises programme will be launched to reduce the costs arising from premises.

Productivity will also be improved by using more shared services and ready-made software and by carrying out investments in stages. In addition, the productivity of projects will be assessed more closely as they progress. The administrative branch is committed to increasing the role of cost-benefit analyses in ICT and digitalisation projects.

Savings in personnel costs

A large part of the operating expenses of the Ministry’s administrative branch are personnel costs. Therefore, in addition other measures, it is necessary to make personnel cuts to achieve savings. The aim is to make these cuts primarily through natural wastage, such as not replacing people who retire or not fulfilling public posts or duties that become vacant for other reasons. The duties of the agencies will be prioritised, the job descriptions of employees revised and work processes further developed. 

Both the Finnish Institute for Health and Welfare and the Finnish Institute of Occupational Health have already conducted negotiations, as a result of which their personnel have been reduced. These cuts will be reflected as savings in 2025. 

Costs arising from premises

Many of the agencies and public bodies in the Ministry’s administrative branch aim to achieve savings in the costs arising from premises. This means that premises will be shared more than before, some premises will be given up and plans will be made to transfer to more affordable premises. Some of these savings measures are already underway while others are still being planned.

Information systems

The government agencies and public bodies in the Ministry’s administrative branch aim to use the current information systems in the most efficient way possible, to develop them as necessary and to make use of the shared systems and services of central government. They also use artificial intelligence to support their work whenever possible. In solution-focused work, the aim is to move increasingly towards automated decision-making. In addition, more and more decisions are delivered to clients electronically.

Other activities

Legislation has also been reviewed to improve productivity. Some potential savings targets have been identified particularly in the duties of the Finnish Institute for Health and Welfare, Kela, the National Supervisory Authority for Welfare and Health (Valvira) and the Finnish Medicines Agency (Fimea). Legislation will continue to be reviewed, and the need for amendments will discussed with each agency and public body in the Ministry’s branch of government. The aim is to implement such amendments as soon as possible.

Chargeable services and the need for legislative amendments concerning such services will be assessed.  Similarly, the Ministry of Social Affairs and Health will examine, for example, to what extent the number of certificates and statements issued for different purposes could be reduced. 

Measures and timetable

Some of the savings measures set out in the productivity programme are already underway in the Ministry’s administrative branch. The use of premises is under review, savings are made in personnel costs, information systems are used more efficiently and priority is given to development measures. In addition, the administrative branch has made proposals for updating legislation. Adjustment measures will be specified and their progress monitored regularly as part of the performance guidance process.

Why do we need a productivity programme?

The weakened state of general government finances in Finland requires that we all – including central government – take part in supporting the achievement of the objective for sustainable public finances set out in the Government Programme.

Without significant action, general government deficits will remain large and the debt ratio will continue to grow, weakening the capacity of general government finances to secure the functioning of the welfare society during and after possible future crises.

The purpose of the productivity programme is to support the savings measures of central government. The savings measures may involve structural reforms, reorganisation of functions and increasing the share of external financing in various functions.

Inquiries:

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 425
Mikko Staff, Director of Finance, tel. +358 295 163 214
Pasi Pohjola, Director General, tel. +358 295 163 585

Email addresses are in the format [email protected]