For the Finnish economy 1997 was the fourth successive year of strong growth. Aggregate output increased by no less than 5.9%, interest rates and inflation remained low and, after a prolonged downward trend, employment began increasing again. However, getting the long-term employed back into jobs requires special measures.
The composition of municipal revenues varies greatly from region to region. In Helsinki, tax receipts are exceptionally large. About 80% of the total collected comes from income tax levied on wage-earners. A second important income category is the share of corporation tax returned by the State to the municipality in which a company is domiciled. By contrast, the property tax introduced in 1993 is of lesser significance.
Municipalities receive resources from the State to enable them to produce basic services. The level of State contributions is linked to the demographic structure and the financial resources available to the municipality in question. In Helsinki, the relative importance of State financial contributions has declined to a tenth of what it was as recently as 1993.
The City-owned enterprises responsible for energy, port services, water supply and public transport are not included in the City budget. Their profit and loss accounts and balance sheets are presented separately.
The breakdown of expenditure directly reflects the scope of our tasks and the emphases in them. The same message comes across clearly in the breakdown of the City employees by sector of operation. Producing basic services for residents is a central component of the City's work.
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