Draft budget for Foreign Ministry’s administrative branch for 2025

The Ministry for Foreign Affairs proposes appropriations of EUR 1.202 billion for its administrative branch for 2025. As part of general government adjustment measures, additional savings totalling EUR 116 million have been allocated to the administrative branch.

The Foreign Ministry’s draft budget allocates the savings targeted at its administrative branch in the central government’s spending limits decision to the operating expenses, housing construction, development cooperation, civilian crisis management, discretionary government grants, 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 253 million is proposed for the operating expenses of the Foreign Service. EUR 5 million of the savings requirement imposed on the administrative branch will be 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 savings requirement will not lead to dismissals or temporary layoffs in the administrative branch.

The Foreign Service promotes the safety and well-being 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 draft budget aims to safeguard the operation of the network in the current international situation.

Development cooperation

Finland’s public development cooperation expenditure is estimated to total EUR 1.064 billion, which corresponds to around 0.36% of gross national income (GNI). 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. 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.

Other appropriations

As part of general government adjustment measures, the Ministry for Foreign Affairs proposes 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.

In its spending limits decision this spring, the Government outlined that the level of discretionary government grants will be reduced and imposed a requirement on the Ministry for Foreign Affairs to make savings to this effect. The Foreign Ministry proposes that no appropriations be allocated to discretionary government grants to foreign and security policy in 2025.

The Minister for Foreign Affairs proposes EUR 53 million for the material and administrative costs of Finland’s crisis management contingents and EUR 17.5 million for civilian crisis management. 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.

Around 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 draft budget 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 chairmanship of the OSCE in 2025.

Consideration of the budget proposal to continue in September

The Government will discuss the budget proposal in its budget session on 3–4 September. The Ministry of Finance will then finalise the Government’s budget proposal, which will be submitted to Parliament on 23 September. Parliament will approve the budget in December.