Welfare regions in Finland face higher losses despite South Savo reducing deficit prediction

Most welfare regions in Finland are projected to experience significantly higher losses this year than previously anticipated, according to calculations sent to Yle by the Ministry of Finance. These estimates are based on assessments made by the welfare regions in May.

In contrast to earlier forecasts, South Savo has managed to reduce its deficit prediction. The deficit has decreased from the original budgetary estimate of 49 million euros to 41 million euros. Santeri Seppälä, the director of the South Savo welfare region, notes that the reduction in the deficit is due to revenue received from other welfare areas. For instance, South Savo provides a substantial amount of joint replacement surgery for patients from elsewhere. According to Seppälä, the number of clients has exceeded budgetary expectations in the early part of the year.

Additionally, previously decided savings measures have begun to take effect. However, the future does not appear promising. “The agreed salary increases have been substantial. At the same time, global circumstances are driving up costs, leading to a rapid increase in expenses,” Seppälä states.

In June, Elo initiated its fourth round of layoff negotiations in its history, indicating ongoing challenges within the welfare sector.