Budget proposal for 2025 and appropriations for Ministry for Foreign Affairs

The Finnish Government proposes a total of EUR 1.2 billion in appropriations for the Ministry for Foreign Affairs for 2025. As part of general government adjustment measures, additional savings totalling EUR 115 million have been allocated to the administrative branch.

The savings targeted at the Foreign Service in the central government’s spending limits decision of spring 2024 are allocated to the operating expenses, housing construction, development cooperation, civilian crisis management, cooperation within the Baltic Sea, Barents Sea and the Arctic region, and to voluntary contributions to international organisations.

Operating expenses of the Foreign Service

EUR 250 million is proposed for the operating expenses of the Foreign Service. EUR 5 million of the savings requirement imposed on the administrative branch has been allocated to operating expenses. The savings in operating expenses will mainly be allocated to the Ministry’s activities in Finland. According to the current estimate, the cost savings requirement will not lead to dismissals or temporary layoffs in the administrative branch.

The Foreign Service promotes the safety and wellbeing of Finland and Finns outside Finland’s borders. The Ministry for Foreign Affairs is responsible for fostering the international connections that are vital for Finland, for promoting Finnish companies’ exports and establishment abroad and for providing statutory consular services to Finnish citizens abroad. The Ministry’s entry services promote work-based immigration and prevent illegal immigration.

The activities of the Foreign Service rely on a comprehensive network of diplomatic and consular missions abroad. Finland’s network of diplomatic and consular missions consists of 89 offices. Two of the offices are temporarily closed. The budget proposal aims to safeguard the operation of the network in the current international situation.

Development cooperation

Finland’s overall public development cooperation expenditure is estimated at EUR 1.064 billion, which corresponds to around 0.36% of gross national income. Additional savings totalling EUR 100 million will be allocated to development cooperation next year, as agreed in the Government spending limits session in April. 

An appropriation of EUR 534 million and mandate commitments of EUR 626 million are proposed for the exclusive official development assistance (ODA) administered by the Foreign Ministry. In addition, Finland can commit to the EUR 510 million increase in the African Development Bank’s guarantee capital in 2025. As part of the Government's additional measures to balance general government finances, the appropriations under the ODA budget item administered by the Ministry for Foreign Affairs will be reduced by EUR 95 million in 2025. EUR 45 million of the savings decided in the Government Programme will be brought forward to 2025. EUR 10 million of the appropriations will be reallocated to development cooperation channelled through civil society organisations. The Government proposes to continue to support developing countries by allocating EUR 70 million to development cooperation funding in the form of loans and investments. It is also proposed that the capital of Finnfund be increased by EUR 5 million. Savings of EUR 5 million have been allocated to the capital increase. 

An appropriation of EUR 47 million and mandate commitments of EUR 40 million are proposed for the item Humanitarian assistance to Ukraine. In addition, the additional capitalisation planned by the European Bank for Reconstruction and Development (EBRD) to support Ukraine has been transferred from the item Humanitarian assistance to Ukraine to the Ministry of Finance’s item. The total amount of the assistance paid to Ukraine from the Foreign Ministry's appropriations is estimated at approximately EUR 60 million in 2025. Ukraine will be the largest beneficiary of Finland’s development cooperation assistance during the government term.

The priorities of the Government’s development policy are improving the rights and sexual and reproductive health and rights of women and girls, and education and climate measures. Finland will also pursue its objectives in EU development policy, international development finance institutions and UN organisations. Finland will also promote the participation of Finnish companies in investment projects funded under the EU Global Gateway initiative.

Discretionary government grants for foreign and security policy

In its budget session, the Government decided to propose EUR 1 million for discretionary government grants for foreign and security policy under budget item 24.90.50 ‘Certain government grants’. The government grants awarded must relate to the Government Programme’s foreign and security policy, to Finland’s international commitments and to the mandate of the Ministry for Foreign Affairs in general. A separate application round for discretionary government grants will be held in autumn 2024. 

The Ministry for Foreign Affairs will update the priorities for discretionary government grants for foreign and security policy. The plan is not to keep the budget item unchanged but to combine other government grants with it. At the same time, the future of government grants and possible further measures will be assessed.

Other appropriations

As part of general government adjustment measures, it is proposed that the appropriations allocated to cooperation within the Baltic Sea, Barents Sea and the Arctic region be removed from the budget. The ongoing projects will be completed using the current funding.

EUR 53 million for the material and administrative costs of Finland’s crisis management contingents and EUR 17.5 million for civilian crisis management are proposed in appropriations for the Ministry for Foreign Affairs. Savings of EUR 2 million have been allocated to civilian crisis management. This appropriation will make it possible to second approximately 130 experts to missions, which is 10 fewer than in 2024. 

Approximately EUR 164 million is proposed for membership fees and contributions to international organisations. The bulk of this sum, a total of EUR 66 million, will be directed to Finland’s contributions to the EU. About EUR 40 million is proposed for contributions to the UN and EUR 11 million for contributions to NATO. The Government has allocated to the appropriation additional savings of EUR 4.5 million, which the budget proposal allocates to Finland’s voluntary funding to various international organisations. 

An allocation of about EUR 12 million, of which 10 million to a budget item of its own, is proposed for Finland’s chairpersonship of the OSCE in 2025.

Productivity programme for the Foreign Service

Productivity measures of EUR 9.1 million in line with the Government Programme were allocated to the Ministry’s administrative branch. In connection with the 2025 budget proposal, savings were allocated to the budget items so that the EUR 5 million cut in operating expenditure and the EUR 2 million cut in construction are different items, which have a direct impact on the operation of the Foreign Service and its productivity. The productivity programme for the Foreign Service is available on the Ministry's website (in Finnish)(Link to another website.).

Foreign Service’s operating and financial planning.(Link to another website.)