General government deficit was EUR 0.8 billion in January to March 2023

Non-consolidated current transfers paid by central government and income tax revenue increased

Central government non-consolidated total revenue grew by EUR 3.9 billion (25.6%). Non-consolidated total expenditure grew by EUR 6.4 billion (35.2%) from the respective quarter of the year before. The difference between revenue and expenditure, that is, the net borrowing of central government was EUR 5.1 billion.

The establishment of wellbeing services counties caused changes in central government's non-consolidated revenue and expenditure. Income taxes received by the local government sector decreased and, correspondingly, income tax revenue received by central government increased. Current transfers paid by central government to the local government sector grew as municipalities' income tax decreased. Income tax received by central government increased most among central government revenue items. The expenditure item that grew most was current transfers paid by central government. The advance financing for wellbeing services counties and the joint county authority for the Hospital District of Helsinki and Uusimaa (HUS group) paid in December 2022 was recorded as current transfer for the starting time period of wellbeing services counties in the first quarter of 2023. The changes in the recording method have no effect on general government net lending.

Local government was divided into new sub-sectors

At the beginning of the year, the local government sector was divided into new sub-sectors: local government excl. wellbeing services county administration (S13131) and wellbeing services county administration (S13132). The change causes a break in the time series of the figures of local government. The health and social services reform had an impact particularly on tax revenue received by local government sectors and current transfers between local government and central government, which also include the advance financing for wellbeing services counties and the joint county authority for the Hospital District of Helsinki and Uusimaa (HUS group) paid in December 2022, to which a timing revision was made and it was carried forward to the first quarter of 2023. The data of the new sub-sectors of local government will become revised as new source data improve and in connection with the compilation of annual national accounts for the statistical reference year 2023.

Social security contributions received by employment pension schemes increased

Employment pension schemes’ total revenue grew by EUR 0.8 billion (9.5%) and total expenditure by EUR 0.6 billion (8.2%) from the quarter twelve months back. The revenue items that grew most in monetary terms were social security contributions received and property income. Of the expenditure items, paid social benefits other than social transfers in kind grew most in monetary terms. The surplus of employment pension schemes was EUR 0.5 billion in the first quarter of the year.

Other social security funds’ revenue grew significantly

Other social security funds’ total revenue increased by EUR 0.6 billion (10.8%) and total expenditure decreased moderately by EUR 0.08 billion (-1.7%) from the quarter twelve months back. The revenue item that grew most in monetary terms was current transfers from central government, but social security contributions received also grew considerably. The expenditure item that decreased most in monetary terms was paid social benefits other than social transfers in kind. The surplus (net lending) of other social security funds was EUR 0.8 billion.