Vibrant Tuusula curbs expenditure growth
The municipality of Tuusula remains one of Finlandu0026#x27;s most vibrant, but the weak overall economic situation and the resulting decline in tax revenue and slowdown in land sales are challenging the municipality to curb expenditure growth and implement structural reforms.
The Tuusula municipal council held a seminar on 28–29 August 2025. The topic of the seminar was municipal finances.
The municipality of Tuusula is balancing its finances in a number of ways. At its meeting on 26 June 2025, the municipal board required that the budget be prepared with the aim of achieving a zero result.
Efforts will be made to curb expenditure growth. In the budget and financial planning period, the municipality will also, for example, evaluate production methods and improve operational productivity, dispose of underutilised properties, and evaluate and prioritise investments in order to manage the amount of debt.
− The municipality’s income and expenditure are not in balance. At the same time, we are committed to implementing a substantial investment plan. It is not an easy equation. We are streamlining our operations and also making longer-term structural reforms, says Mayor Janne Mellin.
Still among Finland’s most vibrant municipalities
Tuusula municipality remains one of Finland’s most vibrant. Measured by the EVP index, the municipality ranks among the top 10.
According to preliminary data from Statistics Finland, internal migration to Tuusula was the fifth highest in the country between August 2024 and July 2025. According to preliminary data, the municipality’s population was 42,617 at the end of July 2025.
Despite the economic climate, business start-ups remained positive in 2025, with a difference of +85 between new and closed businesses.
Land sales revenue lower than anticipated
Construction and strong population growth in Tuusula will slow down for a while in the coming years. Due to the weak market situation, sales of residential and commercial plots are currently lower than anticipated. Land sales revenue will be lower than anticipated this year.
− We will continue to zone residential and commercial plots as planned. As the economy picks up and in the long term, we will certainly be able to sell the plots. In recent years, Tuusula has compensated for its operating deficit too much with land sales revenue, even though the proceeds from these sales should be used to curb the growth of debt, says the mayor.
Tax revenues weaker than budgeted, central government transfers to decrease
The general economic situation is reflected in lower than expected tax revenues. For example, Tuusula’s tax rate is relatively low compared to other KUUMA municipalities.
In Tuusula, unemployment stood at 9.2% in June, which is one percentage point higher than in 2024. Between January and June 2025, municipal tax revenue was EUR 0.7 million lower than last year and corporate tax revenue was EUR 0.9 million lower. According to the August tax forecast, the municipality’s total tax revenue this year will fall short of the budgeted level by €5 million. The budget forecast tax revenue at €113.8 million, while the tax forecast indicates that tax revenue will amount to €108.8 million.
State subsidies for municipal basic services are expected to decrease next year. Preliminary calculations indicate that calculated state subsidies will decrease by €0.4 million. The Ministry of Finance’s budget proposal includes further cuts to state subsidies. The government’s budget session will be held on 1–2 September, after which the impact of possible additional cuts on the municipality of Tuusula can be assessed.
Municipal expenditure has increased
Municipal expenditure has increased in recent years.
Pressure to increase expenditure is currently being caused by factors such as wage increases in the municipal sector, the reform of the law on learning support, the growth in demand for early childhood education services and the increase in the share of payments for TE services.
Loan amounts and interest expenses on the rise
The municipality has invested heavily in renewing its service network, i.e. in new, healthy and safe schools and daycare centres. The municipality’s loan portfolio is relatively large, and the planned investments will increase the loan amount even further.
Over the next five years, from 2026 to 2030, municipal loans totalling EUR 65 million will need to be renewed. As investments are made, the amount of loans will increase, and by the end of the financial planning period, new loans totalling EUR 62.5 million will be taken out. The interest rates on Tuusula Municipality’s current loans have been low. Given market interest rates, the renewal of loans and new loans will increase interest costs in the future.
Further information:
Mayor Janne Mellin, janne.mellin@tuusula.fi
Chief of Staff Annaliisa Oksanen, annaliisa.oksanen@tuusula.fi
Chief Financial Officer Kari Ora, kari.ora@tuusula.fi
This content has been translated using AI