Vantaa's 2022 financial statement shows a surplus – year 2023 enables urban development

Vantaa’s economy is on solid ground, and we can afford to develop the city in 2023.

“The fact that the city’s economy is healthy and balanced promotes our future development. The city’s balance sheet has strengthened, and the loan level is lower than in more than ten years, which is positive, especially considering the ever-increasing interest rates. During the past few years, we have been able to increase investment appropriations, which makes it possible for us to build new daycare centers and schools. We have also been able to integrate cultural projects into our investment program,” says mayor Ritva Viljanen.

Vantaa has launched major attraction and cultural projects such as planning the Vantaa light rail and Tikkurila learning campus, as well as developing Kuusijärvi Recreation Centre Vantaa and Hakunila manor area. Elmo swimming hall is a big new project, as is also Kulttuuritehdas Vernissa, now under basic renovation. In addition, the City of Vantaa’s attraction has improved and risen to the level it had before the coronavirus pandemic.

Year 2022 was historically the last year that the city functioned in its former extent. The responsibility for arranging health and social wellfare and rescue services transferred to the wellbeing services counties at the turn of 2023, when almost 4,000 city employees transferred to the employment of the Vantaa and Kerava wellbeing services county.



Year 2023 will be financially good in many municipalities, thanks in part to the one-off, so-called tax tails, that is, the case when part of the tax revenues will be paid on the basis of the 2022 higher municipal tax rate, as well as on the basis of the distribution share of the corporation tax. Because of the tax tails, Vantaa will gain an estimated “extra” sum of €60 million. In 2024, the situation will, nevertheless, return to normal.

Future financial prospects will be affected by, among other things, the amount of state subsidies given to municipalities, whose final level after the wellbeing services county reform will be updated for year 2024.   

Vantaa has repaid debt regardless of challenges 

Balancing the economy has generated results, and during seven years, Vantaa has been able to pay back its long-term debt by altogether €301 million. The city’s resident-specific loan portfolio is now below the average of both the state and of big cities.

The crises over the past few years have, however, proven that the City of Vantaa can act successfully also in rapidly changing situations and circumstances.

Ritva Viljanen

The attack war that Russia started against Ukraine has shaken up both Vantaa and the entire globe. The consequences of the economic sanctions set against Russia are reflected in the entire global economy, seen in, for example, rising energy and food costs, and more widely, in accelerating inflation and increased interest rates. Electricity production and its sufficiency were widely discussed topics in Finland, as well. 

During 2022, the coronavirus pandemic eased in Finland, and the reduced number of infections diminished the service pressure targeted at health care over the previous year. Nevertheless, the development of increased health care and social welfare costs was more extensive than predicted due to, for instance, increased service needs and challenges of labor availability.

“The state fully compensated also Vantaa for the direct costs arising from the coronavirus pandemic. In Vantaa, the coronavirus compensations prevented the city’s finances from dropping, but enhancing the economy was accomplished by the city's own productivity and growth program. Vantaa’s own coronavirus recovery plan was implemented with over €11 million in 2022,” Viljanen tells.

Figures in brief

Year 2022 realized operating income amounted to €511,3 million, surpassing the revised budget by €32.7 million. The state's direct compensations for the coronavirus pandemic were about €23.4 million. A sales profit of €14.3 million was gained from selling Vantaa Occupational Health Corporation. In addition, fees for land surveying and snow collection were more profitable than estimated.

The city's operating costs amounted to €1 905.3, falling below the budget by €19 million. A revised appropriation was made into the operating costs during 2022, according to which the costs were raised by €57.1 million, especially because of increased costs arising from the coronavirus pandemic and social welfare and health costs.

The budget's original tax revenues estimate was surpassed by almost €43 million, and the city gained altogether €1 203.7 in tax revenues, as well as state subsidies worth €287.6. Compared to year 2021, tax revenues increased by €72.0 and state subsidies by €32.3 million. 

Especially, revenues from corporation tax were very positive in Vantaa, as in municipalities in general. Tax year 2021 corporation tax revenues increased more than anticipated, and 2022 and 2023 withholding taxes also developed positively.

Ritva Viljanen

Municipal tax increased by 5.5% over the previous year. Nationwide, the growth was 4.8%. Also, real-estate tax increased by 8.3%, The increase is partly explained by the change in real-estate taxes, which diminished year 2021 accounting and increased it in 2022. In 2022, the city received state contribution for operational economy 12.7% more than in the previous year.