Helsinki, Finland – Finland's general government deficit expanded by €1.7 billion year-on-year in the third quarter of 2024, according to data released by Statistics Finland on [Date].

Total government revenue increased marginally by €0.1 billion, while expenditure surged by €1.9 billion during the same period. This resulted in a deficit of €5.7 billion for the quarter.

Breakdown of Revenue and Expenditure

Tax Revenue: Total tax revenue grew by €0.1 billion, driven by a €0.5 billion increase in taxes on production and imports. Income and capital taxes rose by €0.2 billion, while social contributions declined by €0.6 billion.
Expenditure: Increased compensation for employees, particularly in public sector services, along with higher central government investments and pension expenditure, fueled the rise in overall expenditure.

Central Government

Central government revenue climbed by €0.2 billion (0.9%), and expenditure surged by €1.1 billion (5.3%) year-on-year. This led to a net borrowing of €1.0 billion.

Revenue: Taxes on products and output at basic prices, as well as current transfers received, were the primary drivers of revenue growth.
Expenditure: Current transfers within the general government and gross fixed capital formation were the main contributors to the expenditure increase.

Local Government

Local government revenue surged by €1.2 billion (10%), primarily due to increased tax revenue and current transfers received. Expenditure grew by €0.6 billion (4%), with wages, salaries, and intermediate consumption being the main drivers.

Social Security Funds

Employment Pension Schemes: Revenue declined by €0.2 billion (-2.2%), and expenditure increased by €0.6 billion (7.2%). Property income was the main contributor to the revenue decline, while paid social benefits, particularly pensions, drove the expenditure growth.
Other Social Security Funds: Revenue decreased by €0.3 billion (-6.6%), mainly due to lower social contribution rates. Expenditure rose by €0.2 billion (4.2%), driven by increased social benefits and social transfers in kind.
The deficit of other social security funds stood at €0.3 billion.

Overall, the widening general government deficit in Q3 2024 reflects increased government spending, particularly in public services and social programs, coupled with modest revenue growth.