The City’s finances 2025
In 2025, expenditure growth exceeded the target set in the strategy. In the previous few years, the target was met. The economic situation deteriorated from the previous year.
The goal of the assessment
The assessment examined the state of Municipal Helsinki’s and its Group’s finances in 2025 and their development from previous years. Additionally, it was assessed whether the objective of limiting the increase in operating expenses and the objective related to the financing of investments set in the City Strategy were achieved. The finances of the state-funded Social Services, Health Care and Rescue Services Division were examined separately.
Conclusions
Municipal Helsinki’s finances were better than budgeted. However, the increase in operating expenditure did not remain within the limits set by the principle of responsibility of the City Strategy 2021–2025. The target for cash flow from operations and investments for investment financing was met in line with the strategy during the council period of office. The economic situation deteriorated from the previous year. Only 62 per cent of investments could be financed with internal funding, and the liabilities and loan portfolio of Municipal Helsinki increased. The economy remains in good shape, but in the future, growing investments will have to be financed by long-term borrowing or by reducing cash reserves. Like in the previous year, the funding of the Social Services, Health Care and Rescue Services Division was balanced. Central government funding is being reduced in Uusimaa, especially in Helsinki.