City Council Approved Budget Proposal for the Year 2010

(published 14.11.2009 , last updated 14.11.2009)

City Council approved Budget Proposal for the year 2010 on November 11th. Helsinki meets the challenges of economic recession by taking considerable loans and curbing expenses. However, no increase in taxes has been proposed yet.

The municipal tax revenue of the current year will fall short of the budgeted level by 200 million euro. This happens despite the fact that the state increased the municipalities’ share of the corporation tax receipts. Tax revenue will further decrease by almost one per cent next year. The weakened labour market situation shows particularly in municipal tax revenue which is estimated to decrease by almost two per cent.

The municipal tax rate in Helsinki remains at 17,5 per cent. Also the general property tax remains at 0,7 per cent. However, the state prescribed new minimum of 0,32 per cent property tax on permanent residential buildings. The former minimum was 0,22 per cent.

Mayor Jussi Pajunen reminds that Helsinki will not give notice or make redundant any of the permanent personnel. The operation cost savings will be made by enhancing productivity. Helsinki will continue structural reforms in accordance with the strategy programme. The new local government regional authorities of transport and environmental services will start operations.

Long-term care of the elderly will be re-organised and the social and health care emergency co-operation will be expanded in the metropolitan area. The City will also continue to centralize supportive services. Service networks and e-transactions will be developed.

The total amount of investments will remain high during the whole three-year economic planning period. In 2010, the City will invest almost 800 million euro.

Helsinki is prepared to take out loans during the years 2009-2012 to the amount of 1,3 billion euro.
Read more: Economic and Planning Centre

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• Text: City of Helsinki