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Enhancing the Effectiveness of Public Spending in Finland

  • Philip Hemmings
  • David Turner
  • Seija Parviainen
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    Finland is committed to high quality and extensive public services and a high level of income redistribution. The heavy tax burden these commitments require is becoming increasingly difficult to sustain due to tax competition and the need to harmonise certain taxes with other EU countries. These pressures on taxation combined with the fiscal effects of rapid ageing imply a need for continued restraint of aggregate expenditure and a need for further efficiency gains in the provision of public services. This paper, one of a series of OECD reviews on public expenditure, looks at how Finland is coping with this challenge. It concludes that the fundamental framework guiding public expenditure in Finland is sound. And, in many areas of public activity the country compares very favourably internationally. However, recent slippage in fiscal discipline needs to be addressed. Also it will be important to monitor, and if necessary follow up on, reforms of pensions and early retirement ... Renforcer l'efficacité des dépenses publiques en Finlande La Finlande est foncièrement attachée à une offre très diversifiée de services publics de haute qualité et à une forte redistribution des revenus. La pression fiscale qu’impose cet attachement est de plus en plus difficile à tenir, non seulement pour des raisons d’efficience, mais aussi du fait de la concurrence fiscale et de la nécessité d’harmoniser certains impôts avec les autres pays de l’Union européenne. Du fait de ces contraintes pesant sur la fiscalité, auxquelles s’ajoutent les conséquences budgétaires de l’accélération du vieillissement de la population, il faut freiner en permanence l’ensemble des dépenses publiques et poursuivre l’effort d’efficacité dans l’offre des services publics. Le présent document de travail, qui s’inscrit dans la série des examens que l’OCDE consacre aux dépenses publiques, traite de la réponse de la Finlande à ce défi. Il conclut à la solidité du cadre fondamental des dépenses publiques en Finlande. Et, dans de nombreux domaines de l’action ...

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    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 358.

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    Date of creation: 17 Jun 2003
    Date of revision:
    Handle: RePEc:oec:ecoaaa:358-en
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