City of Lahti’s financial challenges deepen with cuts in state contributions

According to Tiina Mörsky, CFO, the cut is significant and will increase the pressure to adjust the economy.

The government’s decision to cut state contributions to municipalities’ basic services is increasing pressure in Lahti.

A total of €75 million will be cut from state contributions across the country.

– Next year, the reduction will be made on a percentage basis. From 2027 onwards, the change would become permanent, with a calculated reduction effect of around €1.6 million per year.

According to Mörsky, the amount is significant.

– Such surgery means that more pressure should adapt the city’s economy, either by reducing expenditure or by increasing income or a combination of these.

The city of Lahti is going to be a financial balancing program going on for the next few years.

– By our own measures, we have turned into a better start. Government decisions challenge this development, says Mörsky, CFO.

The first financial statements of the City of Lahti this year is still being completed.