There are no major upheavals in prospect for the finances of the City of Helsinki next year, inspite of the obvious perceived slowdown in general economic growth. This would tend to suggest that the local tax rate payable by residents will not be raised from the present 17.5%.
Tax revenue is still increasing, but at the same time expenditure will be growing from the previous year.
Next year, Helsinki will have estimated outgoings of EUR 3.85 billion.
City MayorJussi Pajunen (National Coalition Party) nevertheless painted the familiar warning signs on the horizon for future years in his budget proposals released on Friday.
The population is aging, new housing areas will swallow up vast sums of money in the years immediately ahead, and the city is still dependent on the surplus turned out by energy utility Helsingin Energia to balance the books.
It does not appear, however, that the stringent belt-tightening exercise that Pajunen promised last year will be coming to pass.
The next stage will see the politicians discussing Pajunen's proposals.
The budget for 2009 will be finalised in November.
