Jyväskylä plans deficit as spending outpaces revenue
Monday 19th October 2026 on 19:15 in
Finland
Jyväskylä’s proposed budget for next year runs a deficit of more than five million euros, with the city expecting its finances to balance no earlier than 2029, Yle reports.
Mayor Timo Koivisto’s proposal includes eight million euros in measures to improve the city’s finances. About five million euros in savings would come from changes to how services are organised, Koivisto said. He said the city was not running a specific savings programme and that services would remain at a good level.
Proposed cuts include reducing library purchases and ending newspaper collections at the smallest libraries. The city would also cut open early childhood education services, such as playgrounds and clubs, and reduce purchases of services by more than 350,000 euros. It plans to end ice time at the Buugi sports centre and stop maintaining the Nyrölä nature trail.
Economic development and employment services face cuts of about 2.1 million euros, including a 200,000-euro reduction to a recruitment voucher for young people.
The budget proposal totals about 713 million euros. Operating expenses would exceed 489 million euros, nearly 11 million more than in this year’s budget proposal. The city estimates tax revenue of about 370 million euros next year.
Koivisto said employment and the business environment would be key priorities, as economic growth has yet to lead to a noticeable improvement in employment. If expenses continue to exceed revenues, the city’s debt is expected to grow by more than 120 million euros over the coming years, adding to future costs.
The mayor said the budget’s main initiatives include the Jyväskylä model, a new programme intended to turn the city’s education and research into more businesses, jobs and innovations. Its targets for 2030 are 600 to 700 new businesses, 6,000 to 7,000 jobs and a fall in unemployment from 16 per cent to 11 or 12 per cent.
Jyväskylä’s council will make the final decision on the budget in early November, and the adopted budget may differ from Koivisto’s proposal.