Finland's three-party government completed work on a draft budget on Wednesday. The package includes an increase of EUR 5 a month in national pension payments. The proposal also includes a "poverty package" with a number of measures, including the lifting of the requirement that those receiving income supplements should pay seven percent of their own housing costs.
Prime Minister Matti Vanhanen (Centre) estimates that the total impact of the package will be about EUR 90 million in 2007. In next year's budget, about EUR 30 million is to be allocated to the purpose.
The government is also proposing a one percentage point increase in the property tax in the Helsinki region as an incentive for more housing construction on zoned land. In other parts of Finland local authorities will be allowed to decide on property taxes themselves.
The government is also planning a review of zoning legislation as a whole, with the aim of simplifying the appeals process, which is currently seen to slow the process of new construction excessively.
The planned transport infrastructure projects were approved with no changes. After the negotiations, Prime Minister Vanhanen, Finance Minister Antti Kalliomäki (SDP), and Social Democratic Party Chairman Eero Heinäluoma praised the positive atmosphere of the negotiations.
Swedish People's Party Chairman, Environment Minister Jan-Erik Enestam welcomed the inclusion of funding for protection of the Baltic Sea.
