In recent months, a flurry of proposals has emerged on how to boost Finland's economic growth. Various interest groups and a government-appointed taskforce, led by Varma CEO Risto Murto, have suggested measures to revitalise the economy.
Ahead of the government's fiscal framework talks, the Confederation of Finnish Industries (EK) called for an increase in labour-based immigration. Murto's taskforce also emphasised the need for highly educated professionals from both Finland and abroad, proposing a controlled increase in the number of international students.
EK has advocated for a net annual inflow of 45,000 international experts to meet future workforce needs.
However, Finance Minister Riikka Purra (Finns Party) has firmly rejected the idea of increasing labour immigration.
"The government will not take measures to increase immigration," Purra told Yle.
Instead, the government is placing significant emphasis on alternative growth strategies during its budget planning session. According to Purra, while tax policy has dominated public discussion, actions to stimulate economic growth are being considered more broadly.
Helsingin Sanomat reported on Wednesday that the government is preparing to reduce earned income taxation. Purra confirmed this to Yle but declined to specify which income brackets might benefit.
"There are no details to disclose yet. I've long maintained that the tight taxation on wage earners' income needs to be addressed," she said.
The government is also examining whether marginal tax rates for the highest earners could be reduced.
A February report by the Research Institute of the Finnish Economy (Etla) found that high marginal tax rates reduce economic activity more than previously thought.
Within the government, there are reportedly differing views on which income groups should receive potential tax cuts. Some media reports suggest the cuts could apply broadly across income levels.
"There are four parties in the coalition, each with its own interests. Inevitably, compromises will be made, and hopefully the outcome will be a good one," Purra said.
The government's planning is complicated by Finland's weak economic outlook and its ambitious targets for the public finances. It remains committed to stabilising the debt-to-GDP ratio by the end of the parliamentary term.
"If we introduce growth measures that cost money, such as tax cuts, we must also be able to finance them in the short term," Purra explained.
She did not provide specifics on the size or nature of potential offsetting adjustments. However, she noted that even if tax cuts for high-income earners could eventually pay for themselves through increased economic activity, this effect must be realised within the current government term, as fiscal targets are tied to that timeframe.