Ministry of Education in 2008 budget proposal

Greater investment in quality of education

Education and science policy in 2008 will focus on improving the quality and effectiveness of education and research, safeguarding the availability of skilled labour and fostering universities.

An additional EUR 18 million in government subsidies for basic education will be disbursed to municipalities upon application in order to improve the quality of basic education. The sum of EUR 0.9 million will be set aside to increase the amount of basic art instruction in schools.

Expansion of vocational education

According to regional labour needs, vocational education will be provided to an additional 2,200 students, particularly in growing urban regions. The introduction of vocational skills demonstrations will continue to expand. Additional funding will be allocated to the development of adult education.

Vocational further education and training in the form of apprenticeships will be provided to an additional 2,100 students starting in 2008, making the total number 27,100 students.

Higher funding to universities and research

Operational funding to universities will increase by EUR 20 million. An additional EUR 7 million, in the form of a one-time subsidy, will furthermore be allocated to the structural development projects of universities. Implementation of the productivity programme will continue. The programme will be subject to further review in the autumn, however. More extensive tax-deductibility of donations boosts funding to research, among other areas. The sum of EUR 1 million will be set aside for planning the proposed “Innovation University”.

The Academy of Finland will be given authorisation to issue an additional EUR 20.3 million in research grants. The Military Archives and the Government Archives will be merged into the National Archives Service subordinated to the Ministry of Education.

Provision for the operational expenditure of the committee for sectoral research will be made in the operating budget of the Ministry of Education.

Student financial aid to be raised

Student grants will be increased by a minimum of 15 percent at all educational levels, starting in the autumn term of 2008. Students will also be allowed to earn 30% more income before their student aid is affected. The student grant available to university students will rise by a maximum of EUR 39/month. The very smallest student grants will, however, be given a fixed-sum increase of EUR 16/month. The income cut-off will be raised by EUR 2,760 to EUR 11,850 per year. The State loan guarantee to students over the age of 18 enrolled in non-university education will be increased from EUR 220 to EUR 300.

Enhanced operating environment for culture, youth and sport policy

The aim of arts and culture policy is to create a favourable environment for actors in culture and the arts, to make diverse artistic experiences and cultural services of high quality available to the general public and to foster the national and international networking of actors in the sector.

An additional EUR 25.5 million will be allocated to culture and the arts. The sum of EUR 851,000 will be set aside for the establishment of a radio and television archive as part of the Finnish Film Archive. Statutory government transfers to theatres and orchestras will be increased by EUR 10.2 million and to museums by EUR 5.7 million. The draft budget also includes a new appropriation of EUR 2 million to support the digitalization of cultural heritage. The sum of EUR 800,000 will be made available to a cultural export project fostering the creative economy in Finland.

A grant of EUR 1 million will be made to the European Capital of Culture project from lottery revenue allocated to supporting the arts.

Additional funding of EUR 1.6 million will be provided for the sports sector. The funding focuses on exercise habits that foster health, civic activity in sports, sports-related child and youth activities and ethical and socially responsible world-class sports in pursuit of international success.

An increase of EUR 2.5 million in the budget for youth activities will be allocated to improving the active citizenship, social reinforcement and living conditions of young people and especially to youth workshops, which will be developed and expanded in stages to become available across Finland.

An appropriation of EUR 300,000 will be made to launch the children, youth and families policy programme.

Higher government transfers to education and culture

Government transfers to education and culture will be increased by more than previously estimated: the new index adjustment puts the total increase at around EUR 230 million. Average unit prices will be raised to reflect actual costs, which will markedly improve the operating conditions of schools and educational and cultural institutions.

The government transfer authority for the building of schools amounts to EUR 44 million and for the building of libraries to EUR 4.5 million.

EUR 419 million in lottery revenue

An estimated EUR 419 million in lottery revenue will be available in 2008. The proposed breakdown of this sum is as follows: research EUR 77.1 million, culture and the arts including libraries EUR 205.1 million, sports EUR 100.5 million and youth work EUR 36.2 million. It is proposed that 22 percent of the total government transfers to libraries be funded from lottery revenue according to the transition timetable provided in the relevant Act (1054/2001).
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For further information:
Education and science policy
- Sakari Karjalainen, Director General, tel. +358 9 160 77220
- Anita Lehikoinen, Director, tel. +358 9 160 77353

Culture, sport and youth policy
- Riitta Kaivosoja, Director General, tel. +358 9 160 77053
- Janne Puhakka, Senior Advisor, tel. +358 9 160 77317

General financial planning
- Eero Pulkkinen, Director of Finance, tel. +358 9 160 77434
- Matti Väisänen, Head of Financial Planning, tel. +358 9 160 77442