Financial position of general government weakened slightly in October to December 2022

Current transfers paid by central government decreased

Central government total revenue grew by EUR 0.2 billion (1.2%) and total expenditure
decreased by EUR 1.3 billion (7.1%) from the quarter twelve months back. The difference between revenue and expenditure, that is, the net lending of central government was EUR 0.5 billion. The revenue items that grew most in monetary terms were received taxes on production and imports, and output at basic prices. The expenditure items that decreased most in monetary terms were current transfers paid. Central government's property expenditure grew by around EUR 0.2 billion from the quarter one year ago.

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 is recorded
as current transfer for the starting time period 2023Q1 of wellbeing services counties. The transfer of the advance financing for wellbeing services counties and the HUS Group to the first quarter of 2023 reduces the expenditure recorded for central government and revenue recorded for local government in 2022Q4. The change in the recording method has no effect on general government net lending in 2022Q4. 

The seasonally adjusted time series D73 (current transfers from central government to local government) is subject to higher than usual uncertainty.

Local government revenue decreased significantly

Local government's total revenue fell by EUR 1.5 billion (9.6%) from the respective quarter of the year before. Total expenditure increased by EUR 0.4 billion (2.8%). The revenue item that decreased most in monetary terms was current transfers from central government to local government. Compensation of employees increased most in monetary terms. The deficit of local government was EUR 1.5 billion, while it was EUR 0.4 billion in the corresponding quarter of the previous year. 

Social contributions received by employment pension schemes increased 

Employment pension schemes’ total revenue grew by EUR 0.3 billion (3.5%) and total expenditure by EUR 0.2 billion (2.1%) from the quarter twelve months back. The revenue item that grew most in monetary terms was social contributions received. 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 0.4 billion.

Other social security funds’ revenue grew,  expenditure decreased 

Other social security funds’ total revenue increased by EUR 0.13 billion (2.5%) and total expenditure decreased by EUR 0.14 billion (-2.7%) from the quarter twelve months back. The revenue item that grew most in monetary terms was current transfers from central government, while social security contributions received remained on level with the year before. The expenditure item that decreased most in monetary terms was paid social benefits other than social transfers in kind. The surplus of other social security funds was EUR 0.08 billion.