Budget

The wellbeing services county reform will enter into force as of the beginning of year 2023 and it will have major impacts on not only the city's operational changes but also on the city’s finances. Removed from the city’s finances will be costs arising from social welfare, healthcare, and search and rescue operations, but cuts will also be made in tax revenues and state contributions. Furthermore, individual tasks—such as student welfare and rehabilitative work activity—will no longer be among the responsibilities of the city. Approximately 4,000 people, currently employed by the City of Vantaa, will transfer to the Vantaa and Kerava wellbeing services county.

In the course of 2022, the coronavirus pandemic has weakened in Finland, and we have been able to lift the COVID-19-related restrictions. In February, Russia’s attack on Ukraine began, and it again changed the city's operating environment in one go. Decisive and fast recovery from the economic crisis brought about by the COVID-19 pandemic was replaced with new economic uncertainties as inflation drastically increased, for instance, because of growing energy prices and interest levels. The threat of recession has increased throughout Europe.

Vantaa’s population growth is estimated to continue. In 2021, Vantaa’s population growth amounted to less than 2,000 people, which is an exceptionally low figure for Vantaa. In 2022, the population growth is projected to increase and amount to approximately 2,800 people. As of year 2023, the population growth is forecast to strengthen. The building prognosis anticipates housing production to settle down to 3,000—4,000 housing units in the years to come. Population growth will present challenges to service production and investments also in the coming years.

The city's unemployment rate has clearly fallen since the early days of the coronavirus pandemic. In August 2022, Vantaa’s unemployment rate was 10.8%, which was 3.1% lower than the rate in the previous year. Before the coronavirus pandemic, Vantaa’s unemployment rate amounted to around 8.5%, which means that recovery from the pandemic is still going on. A special cause for concern is the number of the long-term unemployed, which only reached its peak at the beginning of 2022, before the decrease began.

Vantaa as a growing city will systematically continue to balance its economy, while simultaneously investing in the goals compliant with its city strategy. The City of Vantaa’s operations will, in the future, focus on education, learning, culture, and vitality. Moreover, ensuring local involvement and democracy also constitutes an important task of the city.

Ritva Viljanen, Mayor of Vantaa

In connection with the wellbeing services county reformation, the municipal tax rates of all the municipalities in mainland Finland will be cut by 12.64%. Furthermore, municipalities’ corporation taxes will be cut by a third. The state contributions related to the tasks transferred to the wellbeing services counties will be cut from the municipalities. Nevertheless, the amount of state contributions will compensate for the changed situation in such a way that in 2023 there will be no changes in the balance of municipal finances. The final impacts of the reform will, however, be known as late as in the fall of 2023.

The City of Vantaa will next year have numerous important investment projects, the majority of which are targeted at new building and repair. In 2023, five daycare centers will be completed, contracted by the city and the group company. Planning of Vantaa light rail and Elmo swimming hall will continue. Vantaa Vocational College Varia’s investment project in Vehkala will progress, and a learning campus is being planned for Tikkurila, in addition to the big Jokiniemi project. Developing Kuusijärvi Recreation Center Vantaa into a major nature site will also continue. After a lengthy wait, Kivistö shopping and service center will be completed, and the city will transfer some of its services into the center.