Vantaa’s budget 2026: Economic responsibility is the building of a sustainable future
Vantaa Mayor Pekka Timonen has published his budget proposal for the year 2026. The poor state of the Finnish economy can also be seen in Vantaa, and the city’s economy must be balanced in the coming years. At the same time, however, vitality and the services of the growing city will be taken care of.
Record-breaking unemployment, diminished tax revenues, the predicament of the construction industry and the slow recovery of air traffic all put a strain on Vantaa's economy.
“The poor development of the Finnish economy is reflected in Vantaa's situation and outlook for the next few years. Economic difficulties can also be seen in our everyday lives. The long-term development of the city's services must nevertheless continue, even if we don’t have a lot of leeway,” says mayor Pekka Timonen.
Despite the economic situation, the growing city is building its future. In 2026, we will invest in the city's vitality and the improvement of literacy in schools, as well as innovations, digitalization and knowledge-based management. We will also promote growth in the number of jobs and improve safety.
Figures in brief
The city’s and funds’ combined operating income in the 2026 budget amounts to €380 million, while the operating costs amount to €1,217 million. Compared with the 2025 budget, the operating income will grow by 3.1% and operating costs by 6.4%. Operating costs will especially rise due to the city's growing need for services, municipal salary solutions and upcoming amendments to legislation, such as the changes to support for learning.
Tax revenues and state contributions will cover around 72% of the city's operating costs in 2026. The annual margin of the 2026 budget is €50 million and the deficit for period is €67 million.
The 2026 result for period is estimated to be highly negative, as was the case in 2025, as well. The weak economic situation is manifested in the municipal finances of Finland as a whole. In Vantaa, the drastic decline in construction has a negative impact on the city’s land-sales revenues. The weak employment situation is also the most significant individual factor impacting the city's finances – increased unemployment not only reduces tax revenues, but it also increases the city's costs.
Overall situation in Vantaa
The growth of Vantaa's population has slowed slightly – in 2025, a thousand fewer new residents have moved to Vantaa than at the same time last year. In 2024, Vantaa's population increased by 3,800 residents (1.5%), which is 800 fewer than in 2023.
A low number of new residential building projects have been started in the past few years, which can be seen in the reduced number of housing units completed over the course of 2025. Fewer housing units are being completed in 2025 than in 2024 – during the first half of the year, 230 housing units were completed in Vantaa, which is 610 housing units less than at the same time in 2024.
As in many other large cities in Finland, unemployment in Vantaa is at a record-breaking level and significantly impacts Vantaa's economic situation. In August 2025, Vantaa’s unemployment rate was 13.6%, with an increase of 1.2% compared to the rate in the previous year. On the other hand, the long-lasting increase in long-term unemployment stopped in Vantaa in August 2025, when the number of the long-term unemployed fell by 56 people. However, there is a risk that the high level of long-term unemployment will remain structural. The number of jobs has diminished to a significant extent, which slows down more positive employment development.
The city will balance its finances by €60 million in 2026–2029
Vantaa is launching its four-year economic policy, with the aim balancing expenses and income by 2029 at the latest. The adjustments needed to balance the city's finances amount to an estimated €60 million during this council term (2026–2029). In addition, the aim is to curb the growth in costs by a total of €30 million.
Economic responsibility is the building of a sustainable future. With this economic policy, we are ensuring the city's ability to function even in difficult times, says Timonen.
During the first year of the economic policy in 2026, the city's finances will be balanced by a total of €17.8 million. The adjustment objectives will be divided among the city's different departments as follows:
- Education and Learning €5.5 million
- Urban Environment €8 million
- Urban Culture €2 million
- Group Management and Business Development €1 million
- In addition, the dividend income objectives for Vantaa Energy Ltd will be increased by €1.3 million
Large vitality-increasing investments in Vantaa
The largest investment in the history of Vantaa, the construction of the Vantaa light rail, is beginning. The electric light rail will be an emission-free form of public transportation, and it can bring in up to 60,000 new residents and 30,000 jobs along its route.
In addition to daycare and school projects, the construction of Elmo swimming hall continues, the new upper secondary school in Aviapolis is being completed and the Tikkurila Competence Campus is progressing. Furthermore, the Håkansböle Manor Museum and Havukoski youth activity center will open in 2026. A sports hall is being completed in Korso, preparations are being made for the construction of Oivallustentalo in Myyrmäki and Tikkuraitti is being overhauled.
Key investments in 2026
- Vantaa light rail
- Elmo swimming hall
- Aviapolis upper secondary school
- Tikkurila Competence Campus
- Four new daycare centers
- One new school and several school repair projects
Year 2026 key figures
- population: 257,199 (forecast for Dec. 31, 2026)
- deficit for period: -€67 million
- income tax return: €66.6 million
- internal financing of investments: 15 %
- tax revenues: €2,376/resident
- operating costs: €4,731/resident
- loan portfolio: €5,357/resident
Proposed tax percentages (%)
- income tax percentage: 6.4
- public real-estate tax percentage: 1.28
- soil base percentage: 1.30
- permanent residential building: 0.41
- other residential building: 1.25
- power plant: 3.10
- unbuilt building plot: 6.00
Next
The mayor's budget proposal will progress to decision-making. The city executive board is scheduled to give its budget proposal to the city council on November 4, and the city council is to decide on the budget on November 17.
