Negotiations between the City Board’s political groups on the City of Helsinki’s 2027 budget proposal have concluded. The agreement was approved by all the political groups that participated in the negotiations: the National Coalition Party, the Social Democrats, the Greens, the Left Alliance and the Swedish People’s Party.
“The key priorities set out in the budget proposal received the support of the groups taking part in the negotiations. The budget proposal continues to implement the strategic priorities of the Helsinki City Strategy by, among other things, investing in children and young people and strengthening basic services. At the same time, it ensures the long-term sustainability of the city’s finances and keeps the tax burden on Helsinki’s residents reasonable. I would like to thank the participating groups for their solution-oriented approach and the positive spirit in which the negotiations were conducted,” said Helsinki Mayor Daniel Sazonov.
Highlights from the updated Mayor’s budget proposal:
This is the second budget proposal of the current strategy period, and it continues implementation of the 2025-2029 Helsinki City Strategy: ‘A Helsinki we can be proud of’. Key priorities are reflected in the budget proposal as investments in comprehensive education, children and young people’s literacy, employment services, a sense of community in neighbourhoods, and improved access to primary healthcare. There will be no changes to municipal and real estate taxes in Helsinki in 2027.
In the budget proposal updated on the basis of the negotiation result, Municipal Helsinki’s external operating expenditure will amount to EUR 3,638 million. The annual margin will be EUR 426 million, and the financial year result will be EUR 10 million. A total of EUR 1,249 million in investments will be made. Minor adjustments may be made to these figures before publication of the agenda for the 2 November City Board meeting.
Central Administration
The operating expenses of the city’s Central Administration will increase from 2026’s EUR 514.3 million to EUR 524.6 million in 2027. This translates into a year-on-year increase of EUR 10.3 million, or 2 per cent.
Urban Environment Division
The Urban Environment Division's operating expenses will grow from 2026’s EUR 1,190.8 million to EUR 1,260.6 million. This marks an increase of EUR 69.8 million, or 5.9 per cent. Of the increase in expenditure, 63 million is attributable to the public transport budget heading. Within the Urban Environment Division, the particularly sharp rise in expenditure is concentrated in public transport expenses.
Education Division
The Education Division’s operational expenses will rise from the 2026 budget proposal’s EUR 1,700.8 million allocation to EUR 1,789.5 million, an increase of EUR 88.7 million, or 5.2 per cent.
The budget proposal secures core funding for the division, responds to growth in the numbers of students and includes targeted additional investments in printed learning materials, school meals provided to students in comprehensive education, among other things.
Culture and Leisure Division
The operating expenses of the city’s Culture and Leisure Division will rise from the 2026 budget proposal’s EUR 335.7 million to EUR 349.9 million. This marks an increase of EUR 14.2 million, or 4.2 per cent. Grants supporting culture, sport and youth work will be increased by EUR 1 million.
Social Services, Health Care and Rescue Services Division
The operating expenses of the city’s Social Services, Health Care and Rescue Services Division will increase from the 2026 budget’s EUR 2,425.2 million to EUR 2,550.7 million in 2027. This marks an increase of EUR 125.5 million, or 5.2 per cent. The principle of state financing is applied for the provision of social, health and rescue services. The services are financed through funding allocated to Helsinki by the state, as well as the division’s own revenue.
Mayor Sazonov will next present the budget proposal resulting from the negotiations to the City Board, after which the matter will proceed to the City Council. The City Council will grant final approval of the budget and tax rates for 2027.