A parliamentary committee has identified a 190 million euro funding gap in Finland's welfare regions for next year. The shortfall stems from rising healthcare sector wages that current government funding formulas don't fully cover.
Social Democratic MP Krista Kiuru, who chairs Parliament's Social Affairs and Health Committee, warns that up to half of Finland's 21 welfare regions could face state assessment procedures next year due to financial troubles. This would trigger direct intervention from the finance ministry.
Kiuru criticized the government's approach and demanded extended timelines for regions to balance their budgets. She also called for amendments to welfare region funding laws.
The committee found that ten regions continue to project deficits despite some improvement across the system. Total deficits across all welfare regions are estimated to reach 2.2 billion euros between 2023 and 2026.
Current law requires regions to eliminate deficits by the end of 2026, forcing ongoing austerity measures. Some areas face particularly severe cuts.
The funding problem arises because state funding increases are tied to general wage growth indexes that don't account for specific healthcare sector pay raises. This creates the 190 million euro gap that regions must cover themselves.
Kiuru argued that full wage increases should be reflected in government funding. She expressed concern about finance ministry officials making decisions about healthcare service content without proper expertise.
Three regions - Eastern Uusimaa, Central Finland, and Lapland - have already entered assessment procedures this year. External working groups now recommend rapid cost-cutting measures for these areas.
The situation highlights the ongoing challenges since Finland's healthcare reform transferred service responsibility from municipalities to welfare regions. Critics argue funding didn't follow services adequately, leaving regions underfunded from the start.
Political tensions are evident as the government blames the previous administration for the current system's flaws. Meanwhile, some coalition partners show willingness to amend funding laws.
The standoff reflects deeper questions about how Finland will fund its welfare services amid rising costs and changing demographics. With nearly half the regions potentially under state control next year, the system faces unprecedented central government involvement in local healthcare decisions.