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Third interim report of the year published

2.12.2021 14.00

Combating, testing and treating coronavirus as well as vaccination have resulted in high costs also in 2021. The state has promised to compensate municipalities and joint municipal authorities in full for the costs incurred. Thus, the economic forecast for Espoo also includes the assumption that all coronavirus costs of the Welfare and Health Sector, approximately EUR 60 million, will be compensated in full. State coronavirus compensations are also included in the operating income of the Growth and Learning Sector.

  • External operating income is estimated to be 14.5 % higher than last year. Income is increased by state aids related to COVID-19, which are estimated to be over EUR 66 million more than in the previous year.  
  • External operating expenditure has increased by 7.5 % compared to the same period in the previous year. The original budget will be exceeded by approximately EUR 60 million in terms of the coronavirus costs, and there will also be cost overruns in the services for the elderly, family and social services and employment services, where the municipal component of labour market subsidy will exceed the original budget by more than EUR 7 million. The operating expenditure of the original budget for the Growth and Learning Sector will be exceeded in line with the coronavirus aids received. The appropriations will be underspent in HUS specialised health care and public transport. The external operating expenditure is estimated to be at the level of EUR –2,066 million, an increase of 6.3 % on the previous year.  
  • Net expenditure, i.e. the operating margin deficit, is estimated to be at the level of EUR –1,591 million, which is below the original budget by EUR 20 million. Growth of 4.2 % compared to 2020. 
  • Tax financing (taxes and central government transfers) totalled EUR 1,537 million from January to October, and is anticipated to be EUR 1,809 million in 2021, EUR 84 million more than budgeted. 
  • The market value of Espoo funds has grown by approximately EUR 59.8 million in January–October. At the end of October, the accounting result of the funds was EUR 65.2 million, while EUR 16.9 million was budgeted for 2021. The funds’ revenue forecast has been raised to EUR 62.5 million for 2021. 
  • The annual margin is forecast to be at the level of EUR 288 million due to good tax revenue development, financial income and the anticipated and received coronavirus aids. 
  • The result is forecast to be around EUR 108 million. 
  • The total amount of investments is assessed to be approximately EUR 338 million, and net investments approximately EUR 310 million.