Government proposes nearly EUR 3.6 billion for the Ministry of Transport and Communications’ budget

The Government proposes that nearly EUR 3.6 billion be allocated to the administrative branch of the Ministry of Transport and Communications for 2024.

It is proposed that around EUR 2 billion be allocated to transport and communications networks, around EUR 835 million to transport and communication services and around EUR 711 million to administration and joint expenditure for the administrative branch.

EUR 1.5 billion proposed for basic transport infrastructure management

A majority of the appropriations proposed for transport and communications networks, approximately EUR 1.5 billion, would be allocated to the basic transport infrastructure management of roads, railways and waterways.

In transport infrastructure management, priority will be given to measures that ensure the daily functioning of the transport network and the good condition of the high-traffic network, which is important for business and industry, to transport safety, and to the opportunities provided by digitalisation. 

Transport investment programme to reduce repair backlog and launch new projects

During the parliamentary term, the Government will implement a transport investment programme of nearly EUR 3 billion, which will mainly be financed by selling central government assets. The transport investment programme is part of the Programme of Prime Minister's Orpo's Government. It is also part of the Government’s General Government Fiscal Plan for 2024–2027 to the extent decided in the government budget session.

As part of the Government’s investment programme, EUR 250 million is proposed for reducing the repair backlog.

The Government proposes that the following new transport infrastructure projects be launched:
-    Main road 4 north of Leivonmäki, Joutsa, EUR 14 million
-    Main road 4 Oravasaari interchange, Jyväskylä, EUR 7 million
-    Main road 9 at Lievestuore, EUR 30 million
-    Main road 68 Edsevö–Pietarsaari, phase 3, EUR 7.5 million
-    Planning of the electrification of the Tornio-Kolari rail section, EUR 7.5 million
-    Tampere passenger railway yard, EUR 163 million
-    Planning of the speed and capacity increase of the Savonia railway Kouvola–Kuopio track section, EUR 3 million
-    Planning of the Suupohja rail line, EUR 5 million

It is also proposed that the Budget Authority for phase 2 of the Helsinki-Riihimäki capacity increase be adjusted so that it can give rise to a maximum expenditure for the central government of EUR 383 million, including previously concluded contracts.

Continuation of regional air services secured for a limited period

An appropriation of EUR 102 million is proposed to be allocated for purchasing and developing public transport services. The appropriation would be used for the purchase of train transport services, the purchase and development of regional and local traffic services, the support of public passenger transport in large and medium-sized urban regions, the purchase of air transport services, and for development projects and mobility management.

The service traffic between the Joensuu, Jyväskylä, Kajaani, Kemi-Tornio and Kokkola-Pietarsaari airports and the Helsinki Airport has been outsourced through competitive tendering for a fixed term ending on 28 April 2024. The central government will continue to outsource service traffic in order to safeguard flight connections to regional airports for a limited period, and air traffic will be put out to tender again for the period of 29 April 2024–31 March 2026.

Funding of Savonlinna’s air services will continue in line with the General Government Fiscal Plan. The autumn 2023 government budget session also agreed that the central government will earmark funding, based on the Savonlinna model, for the organisation of air services to Pori for 2025 in connection with a possible new competitive tender. 

An allocation of EUR 20 million is proposed for purchases and development of archipelago and ferry transport services.

It is proposed that EUR 89 million be allocated to improving the competitiveness of vessels in maritime transport.

A total of EUR 29 million is proposed for transport and communications grants.

Next steps

Parliamentary proceedings will begin with a referral debate in a plenary session. The consideration of the Budget by Parliament will take about three months.

Inquiries:

Mikko Nygård, Director of Finance and Administration, tel. +358 50 341 1548, [email protected]