3+3 ways to hit education and culture hard

Research, development, and university index—merely expenditures 

In recent years, the Act on Research and Development (R&D) Funding has been one of the few positive aspects for higher education institutions, business innovation activities, and thereby students. There has been a rare consensus on the Act across almost the entire parliament. Many—including our student union—would like to see a similar, long-term agreement on education funding. Now, the Ministry of Finance is presenting an update to the Act on R&D Funding, which means cuts to businesses, the Research Council of Finland, and directly to universities. What is the mechanism that would make this result in growth and the strengthening of public finances?  

In addition, index increases for core funding would be taken away from universities. Throughout its history, the index has practically always been at risk or frozen. During this government’s term, and even this summer, a half-official message from within the government suggested that the index would remain untouched. The draft budget once again raises the question of whether this part of special protection for education is also being abandoned.  

Finnish National Agency for Education—to be dissolved as newly renewed  

The dissolving of the Finnish National Agency for Education (EDUFI) is a completely new curveball. What are the ‘remaining functions’ mentioned by the Ministry of Finance that will be transferred to the Ministry of Education and Culture (OKM)? EDUFI’s operations include preparing curricula for primary, lower secondary, and upper secondary education, the Studyinfo portal, as well as other study information services, such as the Finnish Education Evaluation Centre (Karvi), contributing to high-quality education in Finland. At the same time, OKM’s entire structure will be renewed at the turn of the year with a legislative package confirmed barely a month ago after two years of preparation. According to the draft, this would have to be conducted again for EDUFI just to save EUR 15 million.

What else and what’s next? 

Along with the previously presented changes, the draft budget proposes cuts to funding for basic public services, funding allocated to arts, culture, and the construction of sports facilities, as well as liberal adult education. None of these measures will help achieve the objectives for education, culture, and growth.  

However, nothing has been decided yet. As already stated publicly, the government may have to start the budget session with a clean slate instead of this first draft. Next, negotiations will take place between the VM and other ministries, with a particular focus on how seriously OKM will take the cuts proposed for its administrative sector. This recently published draft budget will not build a great future for Finland or students. 

Teemu Palkki
Advocacy Specialist: Education Policy

Petteri Orpo’s Government will convene for its budget session on 1–2 September, and the final budget draft will be published on 22 September.  

Releases from the Ministry of Finance

6.8.: Draft budget of Minister of Finance Riikka Purra to stabilise the debt ratio; budget deficit to be reduced to below EUR 10 billion

8.8.: Ministry of Finance publishes its draft budget for 2026