Temporary cut to central government transfers
Act amending and temporarily amending the Act on Central Government Transfers to Municipalities for Basic Public Services
The central government transfer rate for basic municipal services will rise to 25.73 per cent from the beginning of 2026. At the same time, a temporary two per cent cut of 75 million euros will be made to central government transfers received by municipalities for 2026.
- Status
- Passed with amendments
- Submitted
- 22 Sep 2025
- Latest event
- 16 Dec 2025
- Votes
- 3
- Speeches
- 27
- Confirmed
- 22 Dec 2025
- Statute
- 1357/2025
- Source
- eduskunta.fi ↗
What is proposed
The central government transfer rate for basic municipal services will be increased by 0.71 percentage points to 25.73 per cent, with the municipalities' self-financing share becoming 74.27 per cent. For 2026, a temporary reduction in central government transfers of approximately two per cent, or 75 million euros, will be enacted, alongside temporary per-inhabitant deductions (11.42 euros and 3.89 euros per inhabitant).
What it means
The change will affect municipalities and their finances from 1 January 2026. Central government transfers for basic municipal services will total 3.55 billion euros in 2026, but the temporary cut of 75 million euros will reduce municipal revenues by 0–50 euros per inhabitant, with the reduction being largest in municipalities that receive high levels of central government transfers, while not affecting municipalities with negative transfers. Funding accounts for new duties, including the reform of support for learning (53.5 million euros) and an increase in teaching hours in basic education (12 million euros).
How Parliament voted
The act ultimately passed without a vote: no MP proposed rejecting it in the final reading. The votes concerned details of the act.
Proposed statement · Mietintö JAA / Hanna Räsäsen lausumaehdotus (vl 2) EI
Rejected by 98–64.
The Greens voted with the government. 37 MPs were absent. Minutes ↗
Filled dot = yes, ring = no, grey = absent. Point at a dot to see the MP. Seats follow the current seating plan (updated 18 Sep 2026). One MP who voted is not in the current seating plan.
A passed act does not enter into force immediately: the President of the Republic confirms it, and it enters into force on the date set in the act. This act was confirmed on 22 Dec 2025.
Debate in the chamber
What was argued and where each group stood, followed by MPs' speeches verbatim from the parliamentary record. Speeches are shown in their original language.
27 speeches · 2 debates
Key points of the debate
The debate focused on the 75 million euros cut to central government transfers for basic municipal services and the collapse of the broader overall reform of the central government transfer system. The opposition opposed the cuts and accused the Government of jeopardising municipal education and cultural services and deepening inequality between municipalities. The government parties cited the need to adjust public finances and highlighted the additional investments made in basic education.
- How will the 75 million euros cut to central government transfers affect basic municipal services and education?
- Why did the comprehensive reform of the central government transfer system promised by the Government collapse?
- Does the current central government transfer system treat municipalities too unequally?
- National Coalition PartyIn favour
The National Coalition Party (NCP) considered the adjustment measures necessary to balance public finances and emphasised that the Government has simultaneously invested in basic education and support for learning. The group took the view that the current problems with central government transfers stem from the previous government's health and social services reform.
”Edustaja Holopainen jätti tuossa edellisessä hyvässä puheenvuorossaan mainitsematta sen, että hallitus on panostanut 200 miljoonaa perusopetukseen ja oppimisen tukeen.”
— Oskari Valtola - Finns PartyIn favour
The Finns Party (Finns) supported the bill as a measure in line with the government programme and the central government budget. However, the group expressed regret that no consensus could be found within the Government on a broader reform of central government transfers.
”Hallintovaliokunta puoltaa lakiehdotuksen hyväksymistä pienin täsmennyksin.”
— Mauri Peltokangas - Social DemocratsAgainst
The Social Democrats (SDP) opposed the 75 million euros cut and demanded its reversal, arguing that repeated cuts plunge municipalities into financial distress and jeopardise education and cultural services. The group sharply criticised the Government for dropping the reform of central government transfers and called for parliamentary work to begin.
”Meillä vaihtoehtobudjetissa ei tehtäisi 75 miljoonan euron leikkauksia näihin valtionosuuksiin.”
— Pinja Perholehto - Centre PartyAgainst
The Centre Party (Cen) opposed the cuts and considered the cancellation of the reform of central government transfers a major failure by the Government that deepens inequality between regions and municipalities. According to the group, weakening municipal finances will force small municipalities into mergers.
”Tämä jos jokin on oikea keskittäjähallitus.”
— Hanna Räsänen - GreensAgainst
The Greens opposed the cuts to central government transfers and index adjustments, which were seen as directly hitting education and undermining the implementation of the reform of support for learning. The group viewed the collapse of the central government transfer reform as unsustainable for the future of municipalities.
”Tällä esityksellä hallitus on leikkaamassa 75 miljoonaa euroa kuntien peruspalvelujen valtionosuuksista.”
— Inka Hopsu - Left AllianceAgainst
The Left Alliance (Left) opposed the proposal and viewed it as an effective cut to education, early childhood education and care, and other cultural services. According to the group, additional duties have been assigned to municipalities while their funding base is being eroded.
”Hallitus laittaa kuntapäättäjät erittäin vaikeaan asemaan ja tekemään oman likaisen työnsä.”
— Pia Lohikoski
This digest was generated by AI from 27 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.
Yleiskeskustelu päättyi ja asian käsittely keskeytettiin.
Keskustelu päättyi ja asian käsittely keskeytettiin.
Stages of consideration
The bill's path from the preliminary debate to the decision, as recorded by Parliament.
- 22 Sep 2025Eduskuntakäsittelyn vireilletulo · Valtiovarainministeriö
- 26 Sep 2025Lähetekeskustelu · Täysistunto
- 27 Nov 2025Valiokunnan mietintö tai lausunto · hallintovaliokunta
- 5 Dec 2025Ensimmäinen käsittely · Täysistunto
- 12 Dec 2025Toinen käsittely · Täysistunto
- 15 Dec 2025Eduskunnan vastaus ja kirjelmä
Decisions by law proposal1
- 1Laki kunnan peruspalvelujen valtionosuudesta annetun lain muuttamisesta ja väliaikaisesta muuttamisestaHyväksytty muutettuna · 1357/2025 · 22 Dec 2025
Proposed law text
The law proposals in the bill as the Government presented them. The final act may differ after committee consideration.
The law text is shown in Finnish or Swedish from Parliament's official documents; it is not translated into English.
Laki kunnan peruspalvelujen valtionosuudesta annetun lain muuttamisesta ja väliaikaisesta muuttamisesta
Eduskunnan päätöksen mukaisesti kumotaan kunnan peruspalvelujen valtionosuudesta annetun lain (618/2021) 32 §:n 4 momentti, sellaisena kuin se on laissa 1071/2024, muutetaan 21 §:n 1 momentti sekä 32 §:n 2 ja 3 momentti, sellaisina kuin ne ovat, 21 §:n 1 momentti ja 32 §:n 3 momentti laissa 1071/2024 sekä 32 §:n 2 momentti laissa 1235/2023, sekä lisätään lakiin väliaikaisesti uusi 32 a § seuraavasti:
21 §Valtionosuusprosentti ja kunnan omarahoitusosuus
Kunnan 6—12 §:ssä tarkoitetut laskennalliset kustannukset jakautuvat siten, että kuntien valtionosuus on 25,73 prosenttia ( valtionosuusprosentti ) ja kuntien omarahoitusosuus on 74,27 prosenttia.
5 luku – Valtionosuudesta tehtävät vähennykset ja siihen tehtävät lisäykset
32 §Määräaikaiset kuntien valtionosuuteen kohdistuvat vähennykset ja lisäykset
Vuosina 2025—–2027 kunnan peruspalvelujen valtionosuudesta vähennetään 64 miljoonaa euroa 1 momentissa tarkoitetun lisäyksen johdosta. Vuonna 2026 vähennys on 11,42 euroa asukasta kohden.
Vuonna 2026 kunnan peruspalvelujen valtionosuudesta vähennetään 3,89 euroa asukasta kohden valtiontalouden säästötoimenpiteenä.
32 a §Kunnalle maksettavasta valtionosuudesta vuonna 2026 tehtävä vähennys
Kunnalle tässä laissa tarkoitetusta vuonna 2026 maksettavasta peruspalvelujen valtionosuudesta vähennetään osuus, joka vastaa suuruudeltaan 2,1 prosenttia valtion kunnalle maksamasta peruspalvelujen valtionosuudesta. Vähennystä ei tehdä, jos kunnan peruspalvelujen valtionosuus on 0 euroa tai vähemmän.
§
Tämä laki tulee voimaan päivänä kuuta 20 . Sen 32 a § on voimassa 31 päivään joulukuuta 2026.
Main content of the bill (official)
The summary and title were produced with AI on 25 Aug 2026. They are not official documents – check the details in the original bill. The title and summaries are machine translations of the Finnish AI summaries. Speeches and quotations are always shown in their original language.