Government proposal to Parliament for an Act amending the Act on Wellbeing Services Counties and a temporary amendment

Targeted extension of the deadline for covering the deficit

Government proposal to Parliament for an Act amending the Act on Wellbeing Services Counties and a temporary amendment

VM072:00/2025 Statute drafting

It is proposed that the Act on wellbeing services counties be temporarily supplemented so that the Ministry of Finance could, under certain conditions, grant permission to cover accumulated deficits by the end of 2027 or 2028 for those wellbeing services counties for which it is necessary to comply with legislation.

Current events

Basic information In progress

Project number VM072:00/2025

Case numbers VN/20605/2025

Set by Ministry of Finance

Task class Preparation of a government proposal

Term/schedule 26.6.2025 –

Date of appointment 17.6.2025

Law drafting

Government proposal for an Act on the Temporary Amendment of the Act on Wellbeing Services Counties (discretionary extension for deficit coverage)

  • 1

    Under preparation

    Adopted in the plan for the session period on 5.9.2025
  • 2

    Estimated week of presentation

    Original estimated week of presentation 48/2025
    Estimated new week of presentation 50/2025
  • 3

    Current stage: Submitted to Parliament

  • 4

    Statute adopted

It is proposed that the Act on wellbeing services counties be temporarily supplemented so that wellbeing services counties that fully balance their finances and do not accumulate a new deficit in 2025 can, as part of central government steering, be granted, if necessary, the possibility to cover the deficits incurred before 2025 by 2028 at the latest.

Minister in chargeMinister of Local and Regional Government Ikonen

Contact person
Kirsi Ruuhonen, Hallitusneuvos
tel. +358 295 530 413
[email protected]

Project status

Goals and results

No general extension of the deficit coverage period is being prepared for all wellbeing services counties. Instead, the main rule remains that deficits must be covered by the end of 2026.

However, for wellbeing services counties that fully balance their finances, it could be possible, by decision of the Ministry of Finance, to grant a discretionary extension of the deadline for covering accumulated deficits no later than the end of 2028.

The provision of additional time would be implemented through temporary regulation in such a way that each area retains incentives to cover its deficits as quickly as possible.

Starting points

The financial situation of the wellbeing services counties has been challenging during their first two years of operation. The combined accumulated deficit for the years 2023–2024 amounts to €2.45 billion, which equals €438 per resident or approximately 10% of the state funding for 2024. However, for the majority of counties, the economic outlook has improved during the latter part of 2024, and the growth in costs has slowed compared to earlier. It is important to ensure that this positive trend continues.

It is essential that the counties take all possible measures to balance their finances already in 2025, so that the adjustment pressures for 2026 will not be as severe. In 2025, the counties’ financial situation will be eased by the statutory retroactive adjustment of funding based on the actual costs of 2023 (approximately €1.4 billion).

However, the situations of the counties have diverged. The aim of the legislative amendment is to ensure that counties undertaking significant reforms in their operations and finances will have the opportunity to cover their deficits within a discretionary extension period. The legislation under preparation also aims to prevent the realization of unforeseen and uncontrollable impacts on public finances.

Additional information

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