2020 draft budget of the Ministry of Social Affairs and Health and its administrative branch

Ministry of Social Affairs and Health 16.8.2019 11.30
Press release 86/2019

The Ministry of Social Affairs and Health proposes appropriations of about EUR 14.9 billion for the Ministry and its administrative branch for 2020.

This is about EUR 170 million less than in the 2019 Budget. The decrease is mainly due to employment growth and to the ending of the temporary reduction in employers’ health insurance contributions.

Among other things, the Ministry’s draft budget will improve basic social security and will increase pensions for those on the lowest pensions. The situation of families with children will improve as services for children and families will be enhanced. The Ministry proposes that Child Advocacy Centres will be set up in Finland to help children who are victims of sexual offences. The so-called single-parent increment linked to child benefits will be increased. Child maintenance allowance will also be increased, as well as child benefits for the fourth and each additional child.

Research and innovation will be strengthened by continuing the national health sector growth strategy and by starting the work of a new licensing authority for administering the use of health and social services data. In addition, health and social services will be improved by, for example, providing further details concerning the care guarantee and the minimum number of personnel in units providing care for older people.

Of the appropriations for the Ministry of Social Affairs and Health and its administrative branch, 33% are allocated to pensions, 29% to offsetting family and housing costs and 15% to unemployment security. Health insurance accounts for 13%, promotion of wellbeing for 3% and social healthcare organised by municipalities for 2% of the appropriations. In addition, municipalities’ health and social services will receive funding from central government transfers for basic public services.

Increases in child benefits and child maintenance allowance

The Ministry of Social Affairs and Health proposes that both the single-parent increment to child benefits and the child benefits for the fourth and each additional child will be raised by EUR 10 from the start of 2020. The ministry proposes an increase of EUR 7 in the child maintenance allowance. A total of EUR 37 million has been reserved for these reforms.

The Ministry proposes a sum of EUR 4.3 billion for offsetting family and housing costs, for basic social assistance and certain other services. This is EUR 50 million less than in 2019. The decrease is mainly due to lower needs estimates for housing allowance and basic social assistance.

Increasing small pensions

The Ministry of Social Affairs and Health also proposes an increase in small pensions. The full amount of the national pension will be increased by EUR 31 and the full amount of the guarantee pension by EUR 50 per month. The increase will be targeted at those whose pension is less than about EUR 1,000 a month. The costs to central government arising from this amount to EUR 183 million.

The ministry also proposes that the funding contributions for farmers’ accident insurance be revised. This will save EUR 1 million in central government expenditure and increase the costs for the insured by EUR 1.4 million. The revision of the calculation basis for treatment costs used by the Farmers' Social Insurance Institution will increase central government costs by about EUR 5 million.

The Ministry of Social Affairs and Health proposes an additional appropriation of EUR 38.8 million to be allocated to the Social Insurance Institution of Finland (Kela).

Improvement in basic security

The Ministry of Social Affairs and Health proposes an increase of EUR 20 for basic security, which means the minimum rehabilitation allowance, sickness allowance, parenthood allowance, unemployment security basic daily allowance, and labour market support. The costs to central government arising from this amount to EUR 40 million.

The Ministry of Social Affairs and Health also proposes that the fixed term for using conditional reimbursement status in the medicine reimbursement system will be continued. The objective is to gain more experience of a model where the risk of introducing new medicines is divided between the pharmaceutical industry and society.

The ministry proposes an appropriation of EUR 28.4 million for rehabilitative work, which is EUR 1.5 million more than in 2019. The increase is due to the growing number of clients.

The Ministry of Social Affairs and Health proposes an appropriation of EUR 1.98 billion for funding health insurance. This is EUR 443 million less than in 2019. The decrease is mainly due to the effects of the Competitiveness Pact.

Enhancement of services for children and families

The Ministry of Social Affairs and Health proposes that an appropriation of EUR 18 million will be allocated in 2020 for the improvement of services for children and families and for continuing the programme to address child and family services.

The ministry proposes an appropriation of EUR 21.6 million for shelter activities, and wishes to allocate EUR 2 million of that sum to increase the number of places in shelters. For the treatment of mothers suffering from substance abuse, the ministry proposes an appropriation of EUR 3 million.

The Ministry of Social Affairs and Health also proposes that Child Advocacy Centres will be set up in Finland to help children who are victims of sexual offences. The centres would be able to investigate and prevent sexual offences against children. The ministry proposes an appropriation of EUR 1.6 million for the Child Advocacy Centres in 2020. So-called satellite centres will be established alongside SERI Support Centres, which are service centres for victims of sexual violence who are over 16 years of age. The satellite centres will extend the services and coverage of the SERI Support Centres. A total of EUR 0.7 million has been reserved for the purpose for 2020.

Improvement in health and social services

The Ministry of Social Affairs and Health proposes an appropriation of EUR 307 million for healthcare and social welfare services organised by municipalities. This is EUR 105 million more than in 2019. The increase is due to an appropriation of EUR 99 million intended for the development of health and social services.

The appropriations are allocated for developing and improving basic services by, for example, providing further details of the care guarantee and the minimum number of personnel in units providing care for older people. In addition, informal care and home care will be improved, a national mental health strategy will be prepared, a personal budget for people with intellectual disabilities will be experimented with, and family services and pharmaceutical services will be further developed.

Central government funding for medical helicopter services is the same as for 2019, i.e. approximately EUR 29 million. The Ministry of Social Affairs and Health proposes an appropriation of EUR 7.1 million for mediation in criminal cases.

Supporting Health Sector Growth Strategy

The Ministry of Social Affairs and Health proposes an appropriation of EUR 11.2 million to support the growth strategy for the health and social services sector. The measures support the establishment of national centres of excellence and the development of their activities. The centres of excellence refer to the National Cancer Centre, Neurocenter Finland and the biobanks, as well as the Genome Centre and Drug Development Centre already in preparation. The ministry proposes a total of EUR 5.2 million to be allocated for the operating expenses of a licensing authority administering the use of health and social data. A data permit authority started its operations in 2019.

The Ministry of Social Affairs and Health proposes an appropriation of EUR 212.0 million in total for the operating expenses of the agencies and public bodies within the ministry’s administrative branch.

Partial dismantling of activation model

The Ministry of Social Affairs and Health proposes that the reductions and obligations of the activation model be dismantled when measures with corresponding employment impacts have been decided. The costs to central government arising from this amount to EUR 13.7 million. The ministry proposes an appropriation of EUR 2.22 billion for unemployment security. This is EUR 148 million less than in 2019. The decrease is mainly due to employment growth.

The ministry also proposes that the financing of pay subsidies from the appropriation for unemployment benefits should continue in 2020. In addition, the ministry proposes the implementation of a national development programme for work and wellbeing at work in 2020–2022. The ministry proposes that an annual appropriation of EUR 4 million be granted for the programme.

Extension of national vaccination programme

The national vaccination programme will be reformed: in future, the tick-borne encephalitis (TBE) vaccination will be available in a greater number of regions, and the vaccine against papillomavirus (HVP) will also be available for boys. The Ministry of Social Affairs and Health proposes an appropriation of EUR 2 million for these measures. The ministry proposes an appropriation of EUR 2.26 million for the increasing costs of influenza vaccines.

For the promotion of health and functional ability, the Ministry of Social Affairs and Health proposes an appropriation of EUR 40.5 million. This is EUR 5.3 million more than in 2019.

Action Plan for Gender Equality

The Ministry of Social Affairs and Health proposes an appropriation of EUR 0.5 million for the Action Plan for Gender Equality and Equal Pay Programme. The appropriation will be used for measures that will make society more equal.

Other research and education

The Ministry of Social Affairs and Health proposes an appropriation of EUR 27.8 million for the funding of university-level medical research in healthcare units. In addition, the ministry proposes an appropriation of EUR 96 million for central government compensation to healthcare units to cover costs arising from medical and dental training.

For the Ministry of Social Affairs and Health’s key international partner in health policies, the WHO, the ministry proposes an increase of EUR 1.75 million as non-assigned voluntary funding.

Support for war veterans, conscripts and their families

The Ministry of Social Affairs and Health proposes an appropriation of EUR 208 million for the support of veterans. This is EUR 11 million less than in 2019. The main reason for this is that the number of war veterans is diminishing year by year.

Of this sum, EUR 62 million will be allocated for military injuries indemnities, EUR 25 million for the operating costs of institutions for war invalids, EUR 7.3 million for front-line veterans’ supplements and EUR 107.6 million for the rehabilitation of front-line veterans and services provided in their homes.

The Ministry of Social Affairs and Health proposes an appropriation of EUR 5 million for the rehabilitation of disabled veterans’ spouses, widows and war widows, for the rehabilitation of those who served in certain war-time tasks and for a front-line allowance for certain foreign volunteer front-line soldiers. The Ministry of Social Affairs and Health proposes an appropriation of EUR 1.1 million as the central government’s compensation for the care of those who suffered in the wars.

Farm relief services and temporary help

Expenditure on farm relief for farmers and fur producers will decrease by EUR 11.9 million from the previous year and will total EUR 122.8 million. This reduction is due to a needs assessment change. The Välitä viljelijästä (Consideration for farmers) project will be continued, and appropriations have been reserved for the project for 2021–2022 as well.

Grants to associations and foundations

For grants to associations and foundations to help them promote health and social welfare, the Ministry of Social Affairs and Health proposes an appropriation of EUR 380 million. The appropriation is EUR 18 million more than in 2019, thanks to the unallocated gambling proceeds from previous years and the decreased appropriation requirements of the budgetary items to be financed by Veikkaus Oy’s proceeds.

Inquiries

Jiri Sironen, Special Adviser, tel. +358 295 163 410 (general questions)
Timo Lehtinen, Special Adviser, tel. +358 295 163 387 (general questions)
Silja Borgarsdóttir Sandelin, Special Adviser, tel. +358 295 150 116 (general questions)
Kirsi Varhila, Director-General, tel. +358 295 163 338 (health and social services reform and service system)   
Tuija Kumpulainen, Director-General, tel. +358 295 163 280 (services, health and wellbeing, environmental health, Funding Centre for Social Welfare and Health Organisations STEA, war veteran matters)
Outi Antila, Director-General, tel. +358 295 163 164 (social insurance matters)
Liisa Siika-aho, Director, tel. +358 295 163 164 (social insurance matters, benefits)
Hannu Ijäs, Director, tel. +358 295 163 248 (guarantee pension, compensations for military accidents)
Essi Rentola, Director, tel. +358 295 163 155 (residence-based social security)
Liisa-Maria Voipio-Pulkki, Director of Strategic Affairs, tel. +358 295 163 382 (Health Sector Growth Strategy for Research and Innovation Activities)
Taru Koivisto, Director, tel. +358 295 163 323 (vaccination programme, appropriations for health promotion)
Mikko Staff, Financial Director, tel. +358 295 163 214 (budget)
Tomas Forsström, Head of Financial Planning, tel. +358 295 163 563 (agencies and public bodies)
Susanna Grimm-Vikman, Ministerial Adviser, tel. +358 295 163 172 (health and social matters, central government transfers to local government, unemployment security)
Marianne Koivunen, Senior Financial Officer, tel. +358 295 163 573 (social insurance)
Satu Seikkula, Senior Specialist, tel. +358 295 163 479 (government transfers, central government transfers to local government)
Minna Liuttu, Senior Financial Adviser, tel. +358 295 163 582 (social insurance)
Lassi Kauttonen, Ministerial Adviser, tel. +358 295 163 577 (grants from the Funding Centre for Social Welfare and Health Organisations STEA)
Tanja Auvinen, Director, tel. +358 295 163 715 (gender equality)
Minna Saario, Director, tel. +358 295 163 146 (health and social services reform and service digitalisation)
Jukka Lähesmaa, Senior Specialist, tel. +358 295 163 139 (data permit authority, health and social data)