Vantaa balances the city’s finances – City Executive Board to handle the 2027 budgetary framework on June 1.
Vantaa City Executive Board will handle the budgetary framework for the year 2027 in its next meeting on June 1, 2026. The city's economy is under especially hard pressure, due to, among other things, the general economic uncertainty, the gloomy unemployment situation, and the slowdown in housing construction. The starting points of financial planning consist of the city’s brand-new strategy, balancing the economy, a structural review of revenues and expenditures, and a comprehensive economic program currently under preparation.
Unemployment in Vantaa has been increasing to a significant extent in recent years. Furthermore, housing construction has almost stopped, and population growth has decelerated. All in all, the city’s financial situation has deteriorated rapidly and more than previously forecast.
Therefore, Vantaa is now undergoing extensive balancing of the economy. In 2027, the city’s economy will be balanced by 32 million euros, of which €10 will be one-off profits from selling of assets. During the 2026–2029 council term, the need to balance the economy amounts to approximately 80 million euros. In addition, the city will cut investments by 120 million euros during the council term.
"Vantaa’s goal is to balance its economy by 2029. We are carefully and responsibly preparing solutions in such a way that we can ensure that essential services for residents are safeguarded even in a challenging economic situation,” says Mayor Pekka Timonen.
Tax revenues are estimated to grow in 2027 by around 5.8 percent, and state contributions by around 4.4 percent compared to the 2026 forecast. The amount of tax revenues and state contributions in the budgetary framework is based on the Ministry of Finance’s estimates of financial growth, as well as on the Association of Finnish Local and Regional Authorities’ tax forecasts. The ministry presented its outlook in its spring 2026 economic review and the general government fiscal plan.
According to the framework, operating expenses in 2027 will increase by about 4% compared to the 2026 operating plan. In addition to increased service needs and rising price levels, the increase is driven by costs related to unemployment, municipal wage agreements, changes in internal rent income and expenses, as well as Helsinki Region Transport, HSL’s infrastructure compensations and public transport fees.
The city will be especially careful when considering setting up new vacancies, and the new positions will primarily be limited to staffing increases required by law. New vacancies will be established, for example, in basic education, upper secondary education, as well as the Urban Culture and Wellbeing department, as the new Elmo swimming hall opens for business.
The city aims to lower the 2026-2029 investment ceiling for construction projects from 760 million euros to 640 million euros. In 2027, €112.3 million is allocated for new construction and renovation investments, including the Elmo swimming hall and the renovation of several schools. Investments in public infrastructure total €255 million, of which €210 million is allocated to the Vantaa light rail project.
In 2027, the city's external debt loan portfolio is projected to increase by 323 million euros, which means that the total of the loan portfolio would amount to 1.7 billion euros. The framework’s income statement results in an annual margin of €45.2 million and a deficit of -€69.9 million.
Compliant with the budget process, the estimates, projections, and financial figures will be revised and supplemented with new data for the mayor’s budget proposal in fall 2026.
Vantaa City Executive Board is scheduled to approve the 2027 budget framework for operating expenditures and investments on June 1, 2026.
