Government allocates 400 million for western rail line amid municipalities’ concerns in Finland

The government announced in its supplementary budget on Thursday that it will allocate 400 million for the western rail line. This amount represents the maximum contribution, and the state expects local municipalities to match this investment. This decision has sparked concerns among these municipalities, which perceive their share of the construction costs as excessive and are seeking a reduction in their financial obligations.

The finance minister, Riikka Purra, who met with citizens in Turku on Friday, clarified that while the decision had been made previously, it has now been incorporated into the supplementary budget. Purra emphasized that the government is committed to its stance on funding for the project.

Throughout its term, the current administration has highlighted the poor state of public finances and the need to curb rising debt levels. According to Purra, the entire infrastructure package, which includes the western rail line, will be financed through revenues from state-owned assets rather than through additional borrowing for infrastructure projects.

She acknowledged that this approach will reflect in the budget deficit.