Ähtäri seeks €2.6 million state subsidy to address fiscal deficit

The city of Ähtäri plans to apply once again for an increase in the discretionary state subsidy for municipalities. This intention is detailed in the city council’s agenda. The amount being sought is €2.6 million, which matches the deficit that has accumulated in the city’s accounts.

In its 2023 financial statements, Ähtäri reported a total write-down of approximately €7.6 million in loans and receivables from zoo companies, leading to the deficit. The municipality justifies its application citing cuts in state subsidies and a decrease in tax revenues, which have been impacted by a decline in employment. Over the past year, Ähtäri has experienced a significant number of layoffs.

Major investments in the city, particularly in schools, have significantly increased the level of debt, putting further strain on the city’s finances. Concerns about the municipality’s financial health are also linked to its subsidiary companies. Current assessments suggest that the financial targets of these subsidiary entities will not be met, threatening the overall worsening of the municipal group’s deficit.

Ähtäri has previously sought increases in discretionary state subsidies. Last year, the city was granted €320,000, despite applying for €1 million. The decision regarding the increase in discretionary state subsidies will be made by the Finnish government later this fall.