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EUR 8.45 billion budget proposal for the Ministry of Education and Culture for 2025

Ministry of Education and Culture
Publication date 23.9.2024 14.03 | Published in English on 23.9.2024 at 17.40
Press release

The Ministry of Education and Culture’s proportion of the 2025 budget proposal is EUR 8.45 billion, which is some EUR 411 million more than in the 2024 Budget. The proposal implements the Programme of Prime Minister Petteri Orpo's Government, which aims to invest, even in a difficult economic situation, in raising the level of education and training and improving the conditions for conducting science, research and development. The budget proposal supports diverse artistic and cultural creation, and physically active lifestyles of people of all ages.

Early childhood education and care, pre-primary, primary, lower secondary and liberal adult education

Due to the measures included in the Government Programme, an increase of EUR 50 million is proposed for developing primary and lower secondary education and early childhood education and care in 2025. The appropriation increase will be allocated to strengthening primary and lower secondary education, for example by restructuring support for learning. In addition, the level of the municipality of residence reimbursement for private education providers will be raised to 100 per cent, and the minimum number of lessons in primary and lower secondary education will be increased by three weekly lessons per year. EUR 5 million will be allocated to combating bullying at school, and staff shortages in early childhood education and care will be alleviated by allocating EUR 6 million to a new continuing education model.

In liberal adult education, EUR 5 million will be allocated to facilitating the integration of immigrant women. Funding for providing integration training in Swedish will be increased by EUR 1 million.

Upper secondary education

EUR 1,370 million is proposed for vocational and general upper secondary education, which is EUR 48 million less than in the 2024 Budget.

The budget proposal includes EUR 2,067 million for vocational education and training and EUR 904 million for general upper secondary education, largely in central government transfers to municipalities. In addition to central government funding, the figures include a municipal self-financing proportion, which amounts to EUR 1,095 million for vocational education and training and EUR 570 million for general upper secondary education.

Students' right to learning support will be strengthened in general upper secondary education and vocational education and training. For this purpose, permanent additional funding of EUR 10 million is proposed for both sectors. The aim is to streamline the education choices students make at transition points, reduce drop-out rates, improve the students' preconditions for completing a qualification, and strengthen the wellbeing of students.

Adjustments totalling EUR 120 million will be made to vocational education and training in 2025. This is based on an adjustment of EUR 100 million agreed in the government session on spending limits. The additional EUR 20 million will result from the adjustment measures in discretionary government grants decided in the government budget session. However, this saving will not decrease funding or student places in the education for young people completing their lower secondary education or for those without an initial vocational qualification. In addition, the measures to reduce the regulatory burden will cut funding for vocational education and training by EUR 4 million and funding for general upper secondary education by EUR 1 million.

Contrary to the decision which the Government had made in its session on spending limits, the free-of-charge availability of learning materials in upper secondary education will not be limited. Instead, the amount of strategic funding for vocational education and training will be cut by EUR 4 million and the project funding for both vocational and general upper secondary education by EUR 2 million in 2025.

Higher education and science

The Ministry proposes that just over EUR 3.9 million be allocated for tertiary education tuition and for research, which is EUR 220.7 million more than in the 2024 Budget. In line with the national target for research and development expenditure and the current Act on Research and Development Funding, the Government is committed to increasing central government research and development funding to 1.2 per cent of GDP by 2030.

The Ministry is committed to increasing the number of young adults with degrees to as close to 50 per cent as possible by 2030. To achieve this target, the Ministry proposes EUR 10.5 million for increasing the number of available student places in tertiary education in 2025 (EUR 41.3 million in total for 2024–2027). In addition, measures will be drawn up to free up of capacity in education institutions for young applicants completing their first degree. This has also been taken into account in the reform of the financing models for higher education institutions that will enter into force at the beginning of 2025.

It is proposed that core funding for higher education institutions be increased by EUR 76.9 million in line with rising costs. The increase in university funding levels for research and development is linked to a pilot aiming at one thousand new doctoral degrees, which will also increase initial intake for postgraduate studies in scientific disciplines. To achieve this target, the Ministry proposes EUR 86 million for universities in 2025 (EUR 262 million in total for 2024–2027). In addition, EUR 24.9 million will be allocated from the national co-financing of EU-funded R&D projects to universities, universities of applied sciences and CSC – IT Center for Science. Business Finland is expected to develop a mechanism to ensure that funding is also channelled to applied research carried out in partnerships between universities of applied sciences and businesses.

EUR 515.2 million is proposed for the budget authority of the Research Council of Finland for research projects, which is EUR 55 million more than in the 2024 Budget. In addition, a budget authority of EUR 49.6 million is proposed for the Strategic Research Council, which is EUR 6 million less than in 2024. Of the additional funding for the Research Council of Finland's budget authority for research projects, EUR 22 million will be allocated to increasing research project funding, EUR 15 million to thematic research infrastructures, EUR 10 million to clinical research, and EUR 8 million to strengthening research and development conducted by wellbeing services counties. In addition, EUR 50 million is proposed in 2025 to replace EuroHPC LUMI with a new supercomputer (Finland's contribution will total EUR 250 million in 2025–2028).

Funding of discretionary government grants for the promotion of science will be cut by EUR 4 million. The saving will be targeted so as not to endanger the achievement of the funding target under the Act on Research and Development Funding or the statutory science promotion. The adjustment will be made by reducing grants for research facilitating social and political decision-making (private research institutes and think tanks supporting the activities of political parties) and individual grants. No cuts will be made to higher education or science.

Students

It is proposed that EUR 1,065 billion be used for student financial aid, of which EUR 699.3 million would be incurred from study grant and housing supplement expenditure. This takes into account the change, implemented in line with the spending limits decision which the Government made in the spring, according to which students other than those who have custody of a child will receive a housing supplement rather than fall under the scope of the general housing allowance from 1 August 2025 onwards. Due to the growing volume of loans, EUR 225.9 million is proposed for the expenditure arising from the government guarantee for student loans. The funding for meal subsidies for higher education students will amount to EUR 39.6 million. An appropriation of EUR 100.2 million is proposed for expenditure arising from the subsidy for school journeys. This has been reduced by limiting the right to the subsidy from 1 August 2025 onwards to students in education provided free of charge.

Income security of full-time students will principally consist of a study grant, student loan and the restructured housing supplement. The individual housing supplement is better suited for students receiving student financial aid than the general housing allowance that is determined per household. The Government has aimed to restructure the housing supplement so that it favours shared housing and is financially attractive.

Arts and culture

Approximately EUR 535 million is proposed for the appropriations for arts and culture, which is around EUR 20 million less than in 2024. Most of the decrease, EUR 17,4 million, is due to savings made in line with the Government Programme in discretionary government grants awarded by the Ministry of Education and Culture. Of these savings, EUR 10.9 million will be made in central government funding for performing arts and museums (EUR 7.9 million from performing arts and EUR 3 million from museums) and EUR 6.5 million in discretionary government grant appropriations.

A EUR 5.1 million cutback will be made in grants awarded by the Ministry of Education and Culture for national communities in the field of art and culture, investments in cultural facilities, promotion of film, audiovisual culture and creative content, international cooperation, and intercultural dialogue. The Arts Promotion Centre Finland will target the cuts of some EUR 1.3 million in its own appropriations. The Finnish Heritage Agency appropriations for civil society organisations in the field of museums and cultural heritage will be reduced by EUR 90,000.

In accordance with the spring spending limits decision, the appropriation for compensating for the reproduction of works for private use will be cut by EUR 5.5 million. In line with the spending limits decision, the appropriation will be EUR 5.5 million. Other reductions include the ending of the temporary structural support related to the Recovery and Resilience Plan and the removal of the one-off increases for Parliament.

The operating appropriations of the agencies in the arts and culture sector will be reduced in 2025 as part of the central government productivity programme by EUR 1,815,000.

Based on earlier decisions, central government has made provision to fund the European Capital of Culture 2026 project by up to EUR 20 million, of which EUR 5 million is allocated for 2024. The Government is proposing EUR 800,000 for the development of the Paimio Sanatorium. The purpose is to develop the Sanatorium's operations while respecting the legacy left by Aino and Alvar Aalto for Finland's architecture. The Ministry will secure the continuation of ‘Lukulahja lapselle’ book donations, which promote reading among children, by allocating EUR 350,000 to the programme.

As part of central government research and product development investments, the Government proposes an increase of EUR 9 million in Business Finland's budget authority for increasing research and development by the creative industries.

Sport services

Around EUR 155 million is proposed in appropriations for sports and physical activity, which is EUR 11 million less than in the 2024 Budget. The decrease is mainly due to central government adjustment measures.

EUR 20 million has been reserved annually over the government term for increasing physical activity. The appropriation would be used to implement a cross-administrative action plan, 'Get Finland Moving', to boost physically active lifestyles and functional capacity. 
Sports, physical activity and elite sports will be promoted in line with the Government Programme, paying particular attention to strengthening equality, non-discrimination and responsibility.

Youth work

Some EUR 71 million is proposed for the youth work appropriations, which is EUR 3 million less than in the 2024 Budget. An increase of EUR 1 million for municipal youth services for school youth work projects, the funding of which the Government has made permanent in the Budget, will be allocated to the administrative branch from the EUR 5 million cross-administrative youth package, on which the Government made a decision in its session on spending limits. Small but important investments will be made in children's and young people's leisure activities, such as leisure activities during school holidays, and the 'You are not alone' service will be made permanent and expanded to the youth sector. The level of appropriations is mainly affected by central government adjustment measures.

"In the deteriorated economic situation, I want to ensure that youth organisations and sports NGOs can keep working in 2025 and avoid rapid or immediate negotiations on reorganisations or redundancies. Next year, we will not cut funding for general grants to sports organisations or youth organisations," says Minister of Youth, Sport and Physical Activity Sandra Bergqvist.

Matters concerning religious communities

A EUR 20 million cut will be made to the appropriation for the Evangelical-Lutheran Church towards societal functions (funeral services, population register matters and the maintenance of buildings and movable property of cultural and historical value) and to the grant paid to the Orthodox Church. The decrease is due to the fact that, in order to balance general government finances, the Government decided in its session on spending limits in spring 2024 to abolish the earned income allowance made in municipal income tax. Abolishing the earned income allowance and lowering the unemployment insurance contribution will result in an increase of EUR 49.3 million in church tax collected for the Evangelical-Lutheran Church and the Orthodox Church. The Government will monitor the development of church tax revenue and take measures if the revenue does not increase by at least EUR 20 million in 2025.  After the cuts, approximately EUR 105 million will be allocated to the societal functions of the Evangelical-Lutheran Church and approximately EUR 2.4 million to discretionary government grants for the Orthodox Church.

Budget proposal 2025

Central government productivity programme in the administrative branch of the Ministry of Education and Culture

The Government will implement a central government productivity programme to support the Government’s objectives for sustainable public finances. On the basis of the Government Programme and the spring 2024 government session on spending limits, the Ministry of Education and Culture has drawn up a productivity programme, which includes the measures to achieve the savings.

Savings in the administrative branch of the Ministry of Education and Culture will amount to EUR 32.4 million by 2027. In addition to central government agencies' operating expenditure, the programme measures include other items similar to operating expenses and other consumption expenditure.

The Ministry of Education and Culture programme (in Finnish)

Government proposals submitted in connection with the budget proposal

Government proposal for an act amending the Vocational Education and Training Act and related acts

The proposal is related to central government adjustment measures and the efforts to reduce the regulatory burden in line with the Government's decisions, and to the additional funding for support for learning in vocational and/or general upper secondary education.

Government proposal for an act repealing section 22 and section 70, subsection 2, paragraph 5 of the Act on Early Childhood Education and Care

It is proposed that section 22 of Act on Early Childhood Education and Care (540/2018) be repealed, in which case the obligation to draw up a local early childhood education and care curriculum would be abolished. It is also proposed that the reporting obligation for continuing professional education of personnel be eased by repealing section 70, subsection 2, paragraph 5 of the Act on Early Childhood Education and Care.

Government proposal for an act amending section 2 of the Act on Central Government Funding for the Evangelical-Lutheran Church for Certain Societal Functions and section 119 of the Act on the Orthodox Church

It is proposed that central government funding to the Evangelical-Lutheran Church for certain societal functions and discretionary government grants to the Orthodox Church be cut as of 1 January 2025.

Government proposal on amending the Basic Education Act (support for learning)

The proposal will revise the provisions of the Basic Education Act on support for learning and school attendance. The proposal seeks to clarify and specify the forms of student support and to ensure a sufficient level of support by having nationally uniform, clear and diverse forms of support.


Inquiries:

  • Anita Lehikoinen, Permanent Secretary, tel. +358 295 330 182
  • Eeva-Riitta Pirhonen, Director General (primary and lower secondary education, early childhood education and care, liberal adult education), tel. +358 295 330 258
  • Petri Lempinen, Director General (vocational education and training, general upper secondary education), tel. +358 295 330 180
  • Sirkku Linna, Director General, (higher education and science), tel. +358 295 330 515
  • Riitta Kaivosoja, Director General (culture and arts policy, basic education in the arts, matters concerning churches and other religious communities), tel. +358 295 330 129
  • Esko Ranto, Director General (youth and sport policy, student financial aid), tel. +358 295 330 115
  • Pasi Rentola, Director of Finance, tel. +358 295 330 211
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