Ministry for Foreign Affairs 2016 budget proposal

The Ministry for Foreign Affairs’ 2016 budget proposal for its administrative branch totals EUR 1,048 million. As a part of the new consolidation measures in public finances, development cooperation appropriations will be cut by EUR 201 million in accordance with the Government Programme.

Foreign and security policy aims to strengthen Finland's international position, to secure Finland's independence and regional integrity as well as to improve the security and welfare of people in Finland. Finland promotes international stability, peace, democracy, human rights, the rule of law and equality.

Operating expenses

A total of EUR 226.6 million is proposed for the operating expenses of the Foreign Service. As a part of the consolidation measures in public finances, the operating expenses will be cut by EUR 0.8 million.

A comprehensive network of missions abroad is a central instrument in the implementation of foreign policy, and the budget proposal aims to secure Finland's external representation. A flexible and appropriate presence abroad functions as a source of information and power of influence, which increases Finland's security and welfare. The Foreign Service will direct its resources specifically to countries of increasing political or economic importance for Finland. The restructuring and streamlining of Finland's foreign representation will be continued, taking particular note of Nordic cooperation, the development of the EU’s External Action Service and the Team Finland operating model.

The Team Finland network will be strengthened as part of the Government's key projects by employing to certain Finnish missions abroad experts who specialise in trade and economic issues.

Consular services provided by the Foreign Service will be developed, taking into account the revised Consular Services Act and making use of new digital solutions. Cooperation between authorities and the opportunities offered by Nordic and EU cooperation will be utilised in providing immigration services, in preventing illegal entry to the country and human trafficking, as well as in crisis issues..

Finland will hold the Presidency of the Nordic Council of Ministers in 2016 and is preparing for the Chairmanship of the Arctic Council in 2017–2019.

Crisis management

Finland will participate in international crisis management duties with particular focus on Lebanon, Afghanistan, Kosovo, Georgia, Libya and Ukraine. In 2016, the number of personnel seconded to military and civilian crisis management tasks is expected to be around 690.

A total of EUR 49 million is proposed for the expenses of the Finnish crisis management troops. The biggest operations include the UNIFIL operation in Lebanon and the Resolute Support operation in Afghanistan.

A total of EUR 15.4 million is proposed to be allocated for the participation of civilian personnel in crisis management, of which EUR 400,000 is set aside for mediation. Finland contributes to civilian crisis management mostly through EU operations.

Development cooperation

The Government's development cooperation expenditure in 2016 is estimated to be EUR 713.6 million; according to current forecasts, this corresponds to approximately 0.35% of gross national income. A total of EUR 498.1 million is proposed for the ODA administered by the Foreign Ministry. As a part of the consolidation measures in public finances, the net impact of cuts targeted at development cooperation appropriations will be EUR 200 million. In accordance with the budget allocation table, EUR 148 million will be channelled to country- and region-specific development cooperation, EUR 119 million to multilateral development cooperation, EUR 70 million to humanitarian aid, EUR 65 million to supporting CSOs, and EUR 45 million to the European Development Fund. The biggest cuts in euro terms are directed at multilateral cooperation.

Finland will prioritise humanitarian aid relatively more than other assistance, because the humanitarian situation in the world is exceptionally poor.

Finland's long-term aim is to raise the level of its development cooperation contribution to 0.7% of gross national income in accordance with the UN goals. However, during this government term, savings have to be directed at development funding.  In accordance with the policy line of Prime Minister Sipilä's Government, income acquired from emissions trading will not be channelled to development cooperation starting from 2016.

Finland's development policy has four clear priorities, which also steer development cooperation funding. Finland focuses on the position of women and girls; on strengthening democracy, human rights, the rule of law, peace-building, free media, work against corruption, and the tax base in developing countries; on energy, water and food as part of sustainable development, including responding to climate change; and on promoting developing countries' own business sector, and developing responsible corporate activity and companies' operating environment. Emphasis will be placed on improving the effectiveness, productivity and measurability of development cooperation.

EUR 140.0 million is proposed for financial investments in development cooperation. In 2016, EUR 130.0 million will be used to capitalise Finnfund (Finnish Fund for Industrial Cooperation) and EUR 10.0 million to capitalise the Enter-American Investment Corporation.

Other appropriations

EUR 1.6 million is proposed for Baltic Sea, Barents and Arctic cooperation. The main focus of these activities will be on Northern Dimension policy and multilateral cooperation in the regional councils of the North and on projects that support Finland's upcoming Chairmanship of the Arctic Council.

Allocation of EUR 87.0 million is proposed for membership fees and contributions. Finnish contributions to the UN account for the bulk of this appropriation.

It is estimated that the administrative branch of the Ministry for Foreign Affairs will accrue EUR 42.5 million in revenues not included in the Ministry’s operating expenses/expenditure. The revenue sources include, among others, visa processing fees, proceeds from the sale of property, refunds of membership fees and contributions to international organisations, UN pay compensations for participation in military crisis management, and refunds of development cooperation assistance.

Inquiries: Risto Hakoila, Financial Director, tel. +358 295 351 287, and Katja Bordi, Head of Financial Planning, tel. +358 295 351 284; Pekka Puustinen, Director General, (development cooperation matters), tel. +358 295 350 560, and Marja Liivala, Director, (matters concerning Baltic Sea, Barents and Arctic cooperation), tel. +358 295 351 727.