Lahti’s profit forecast is strongly negative – the city is expected to make losses of more than EUR 43 million

The strongly negative outturn forecast is mainly due to lower tax revenue.

According to the profit forecast published by the Lahti City Council, the city’s result for the financial year is expected to be negative by EUR 43.2 million this year. The result is expected to be strongly negative, as tax revenues are expected to be lower than previously estimated.

According to Sirkku Hildén, Chairwoman of the Lahti City Council, the positive aspect of the strongly negative forecast is that it is EUR 7 million better than expected.

– Municipal finances are affected by many factors and are difficult to predict. It is affected, for example, by how the Ministry of Finance allocates state subsidies to municipalities. Last year, an extra four million was given in December, and now it has already been taken away again,” says Sirkku Hildén.

According to Hildén, the result of a poorly predicted result of the city of Lahti tells about a permanent problem with regard to funding.

– All changes in legislation have caused structural imbalance in financing. Our state subsidies have been cut and we have become new responsibilities, which, however, have not been fully funded.

The economic forecast of the City of Lahti is based on an estimate of the financial review of the Ministry of Finance.