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Government Cuts University Funding While Boosting Infrastructure Projects

By Nordics Today News Team •

Finland's government has redirected budget cuts from the film industry to universities and applied sciences institutions while approving major infrastructure investments. The revised supplementary budget maintains fiscal savings targets but shifts the burden to higher education. Simultaneously, the government is expanding student capacity in technical fields and funding transportation projects nationwide.

Government Cuts University Funding While Boosting Infrastructure Projects

The Finnish government has made significant changes to its supplementary budget proposal, redirecting planned cuts from the film industry to higher education institutions. Ministers decided to impose 2.9 million euros in funding reductions for universities and universities of applied sciences while canceling previously announced 7.8 million euro cuts to film industry support.

Finance Minister Riikka Purra and Education Minister Anders Adlercreutz announced the revised budget measures on Thursday. The decision represents a major shift in the government's savings strategy after facing substantial criticism from cultural sectors about the original film funding reductions.

Higher education institutions now face direct budget constraints even as the government simultaneously expands student intake capacity. The cabinet approved 11 million euros for additional university placements in 2026, with total funding reaching 44 million euros through 2028. These new student positions will focus on fields supporting economic growth, particularly nuclear and energy technology programs.

The budget redistribution reflects the government's challenging position between supporting cultural industries and maintaining fiscal discipline. Film industry representatives had argued vigorously that their sector already faced severe financial pressures before the proposed cuts.

Meanwhile, the government committed substantial resources to infrastructure development across Finland. Major transportation projects received funding approvals, including 109 million euros for improvements to Highway 9 between Tampere and Orivesi. The Liminka-Oulu double track railway project gained 199 million euros in funding authorization.

Other infrastructure investments include the Kupittaa Deck development in Turku, which will create a new vocational school campus alongside residential and commercial spaces. Road improvements for Highway 4 at Vestonmäki and planning for Route 51 from Helsinki to Karjaa also received budget allocations.

The supplementary budget also addresses healthcare reform with 40 million euros dedicated to developing a personal doctor model. This initiative builds on existing pilot programs in Western Uusimaa that aim to improve primary care services through assigned physician systems.

A notable administrative change involves consolidating ministerial communication functions under the Prime Minister's Office beginning in mid-2026. The transition will transfer 5.3 million euros in operational funds to the central government office, representing half of the affected ministries' annual communication budgets.

These budget decisions demonstrate the government's attempt to balance competing priorities during economic constraints. While education faces immediate cuts, long-term investments in infrastructure and healthcare suggest strategic planning for future growth. The reallocation from cultural to educational sectors indicates shifting political priorities within the coalition government.

Published: November 20, 2025

Tags: Finland university funding cutsFinnish infrastructure projects budgetNordic education policy changes