Draft budget of the Ministry of Social Affairs and Health and its branch of government for 2027

Draft budget of the Ministry of Social Affairs and Health and its branch of government for 2027

The Ministry of Social Affairs and Health proposes EUR 15.0 billion in appropriations for its Ministry and branch of government in 2027. This is about EUR 128 million more than in the 2026 Budget.

Of the appropriations for the Ministry of Social Affairs and Health and its branch of government, approximately 38 per cent will be allocated to pensions, approximately 29 per cent to offsetting family and housing costs and to basic social assistance, approximately 14 per cent to unemployment security, approximately 12 per cent to health insurance, approximately 3 per cent to supporting healthcare and social welfare and approximately 1 per cent to grants for the promotion of health and social wellbeing. Of the appropriations under the main title of expenditure, 0.4-1.1 per cent will be allocated to each of the other classes of the main title.

Key changes affecting the level of appropriations

The level of appropriations for the Ministry of Social Affairs and Health and its branch of government is affected by changes in needs assessments, and especially by decisions made in the Programme of Prime Minister Petteri Orpo's Government and by decisions made in spring 2026. The main changes derive from the following proposals:

• The cutback in the grants awarded by the Funding Centre for Social Welfare and Health Organisations STEA will reduce the need for appropriations by EUR 50 million.
• The comprehensive reform of social assistance, which entered into force in 2026, will reduce the need for appropriations by EUR 30 million.
• The termination of rehabilitative work experience will reduce the need for appropriations by EUR 20 million.
• A sum of EUR 40 million will be allocated for developing the service structure of healthcare and social welfare.
• A sum of EUR 67 million is proposed for maintaining the healthcare preparedness and readiness of the Finnish Defence Forces, of which EUR 37.9 consists of procurement.
• A total of EUR 25 million will be allocated for NGO grants for wellbeing services counties.
• At total of EUR 22.8 million will be allocated for the development of the benefit systems and e-services of the Social Insurance Institution of Finland (Kela).

A total of EUR 67.1 million in savings has been allocated to the operating expenses of the branch of government through productivity programme measures included in the Government Programme and other savings in operating expenditure. This represents an increase of around EUR 29.6 million in operating expenditure savings compared to the 2026 Budget.

Promoting Kela's exchange of information to reduce misuse will cut back the central government's share of Kela's operating costs by EUR 2.8 million and of benefit expenditure by EUR 2 million.

More detailed content of the draft budget:

Employment and social security

Rehabilitative work experience and the reimbursement of expenses for its duration will be discontinued as part of the reform of social welfare services that promote employment and work ability and functional capacity. This will reduce the compensations for rehabilitative work experience paid to wellbeing services counties by EUR 20 million and the compensations for costs paid in connection with unemployment security by EUR 3.5 million.

The 'Norwegian model' will be introduced for child home care allowances. Under this model, only those children's primary custodians who have lived in Finland or elsewhere in the EU or the EEA for at least three years before the start of the benefit would be eligible for child home care allowance. The objective is to promote the integration and language learning of children and parents. The model is estimated to increase the central government's share of unemployment security costs by around EUR 0.4 million. Municipalities would be compensated for the associated increase in the costs of early childhood education and care.

Health insurance and pharmaceuticals

A total of EUR 6 million will be allocated to the countrywide freedom of choice pilot based on reimbursements to persons aged 65 and over. The aim is to raise the maximum number of visits to general practitioners available to customers from three to six visits per calendar year and to include physiotherapy as part of the pilot.

A total of about EUR 5 million will be allocated to increasing the reimbursement rates under the Health Insurance Act for large accessible vehicles, with the central government contribution accounting for EUR 2.6 million.

The repayments by pharmaceutical companies to the National Health Insurance Fund as part of the conditional reimbursement procedure for medicines will be increased by EUR 15 million. This will cut central government funding in full.

Reimbursement for medicines would be extended so that reimbursement status for outpatient care products could be approved when used in combination with another product, such as a hospital one, and the indication of this product includes combination treatment. In 2027, the increase in reimbursement for medicines is expected to be around EUR 6.8 million, EUR 3.5 million of which would be the central government's share of funding.

EUR 0.6 million is proposed for developing pharmacotherapy data management. This will enable the continued development of a national medication list for the Social Insurance Institution's Kanta services. The Kanta medication list brings together each person's up-to-date medication data. This improves medication safety and makes care planning easier.

In addition, an appropriation of EUR 2.2 million is proposed for enhancing the medicines data repository. The aim is to ensure the controlled introduction of new medicines and to promote the rational use of medicines by means of improved guidance and a better knowledge base.

Pensions and benefits

It is proposed that persons under 18 years of age with coeliac disease be entitled to children's basic disability allowance. The change will increase the central government transfer by EUR 1.1 million.

Supporting healthcare and social welfare

A total of EUR 25 million will be allocated to discretionary government grants for the wellbeing services counties and the City of Helsinki. The grants will be used to develop the activities of regional health and social services organisations and for the promotion of health and wellbeing.

A sum of EUR 40 million will be allocated to development grants for healthcare and social welfare. Priorities will include continuity of care, developing family doctor models, informal care and improving services for children and young people.

EUR 67 million will be allocated to the Defence Forces for investments related to healthcare preparedness and readiness, of which EUR 37.9 million will be allocated for procurement. Preparedness for the use of military force is planned and implemented in cooperation between healthcare and social welfare and the Defence Forces. Its aim is to strengthen and ensure the adequate performance of healthcare in situations involving the use of military force while safeguarding the functioning of national healthcare.

EUR 10 million will be allocated to compensate for the costs of the first stage of training required for specific qualifications in psychotherapy. The compensation would be paid to universities, the wellbeing services county operating a university hospital and the joint county authority for the Hospital District of Helsinki and Uusimaa. The funding will be transferred from the main title of the Ministry of Education and Culture. A total of EUR 13 million will be deducted from other compensations for professional training in healthcare and social welfare. Of this, EUR 3 million is part of the productivity savings agreed on in the Government Programme and EUR 10 million constitutes new savings decided on in spring 2026.

An additional appropriation of EUR 2.685 million will be allocated to cover the costs of the new tasks of healthcare and social welfare units that assist in investigating suspected offences involving children (Barnahus units).

An increase of EUR 2.3 million will be allocated to healthcare for higher education students due to an increase in the number of students. In addition, EUR 4 million in transferred items accumulated under this item will be used to finance these operations.

A total of EUR 4.4 million is proposed for the implementation of the European Health Data Space (EHDS) Regulation under the main title of the Ministry of Social Affairs and Health. The EHDS Regulation will require changes in information management so that the new rights of patients and the exchange of information between Member States can be implemented before the end of the transition periods.

A discretionary government grant of EUR 0.5 million will be allocated to the wellbeing services counties of Southwest Finland, West Uusimaa and Lapland for the development of bilingual services.

Mediation services in criminal cases will be transferred to the branch of government of the Ministry of Justice.

Promoting health and functional capacity

A total of EUR 1.7 million in central government funding is proposed for preventing and reducing harm caused by gambling. The proposed appropriation is EUR 0.2 million more than in the 2026 Budget. An appropriation of EUR 0.2 million is proposed for the activities of the UKK Institute maintained by the Urho Kekkonen Fitness Institute Foundation. This is EUR 0.7 million less than in the 2026 Budget.

Grants

Just under EUR 190 million is proposed for grants to associations and foundations to help them promote health and social wellbeing. This is EUR 84 million less than in the 2026 Budget.

Consideration of the draft budget to continue in September

This press release concerns the Ministry of Social Affairs and Health's draft budget. The Government will discuss the draft budget in its budget session on 1-2 September 2026. The Ministry of Finance will then finalise the Government's budget proposal, which will be submitted to Parliament on 21 September 2026. Parliament will then approve the Budget in December.

Inquiries:

Veli-Mikko Niemi, Permanent Secretary, tel. +358 295 163 425
Mikko Staff, Director of Finance, tel. +358 295 163 214
Nuutti Hyttinen, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 073
Hannu Peurasaari, Special Adviser to the Minister of Social Affairs and Health, tel. +358 295 163 662
Emmi Venäläinen, Special Adviser to the Minister of Social Security, tel. +358 295 163 058
Eemil Nuuttila, Special Adviser to the Minister of Social Security, tel. +358 295 163 366
Email addresses are in the format [email protected].

• Draft budget of the Ministry of Social Affairs and Health and its branch of government for 2027 (in Finnish)