Europe

Finnish government fully compensates for gambling-derived funding decline

government Of the prime minister Sanna marin (SDP) on Friday fully dented about € 410 million in funds to organizations in the fields of arts, culture, science, sports, youth work, social and medical care, caused by a decline in Veikkaus earnings. I agreed to repay. Finnish state-owned gambling monopoly.

The government has already agreed to repay 80 percent of the gambling income beneficiary’s funding decline.

“We recognize that the coronavirus situation is very difficult. Now that we have started an open society, the areas of beneficiaries in the fields of culture, sports, society and healthcare are important. That’s why we want to support the activities of the organization, “Marin explained on Friday.

The government has raised money to make up for the remaining € 77 million last weekend. According to Helsinki Ginsanoma.. According to the newspaper, the government has chosen to invest € 117 million in unallocated funds in the draft budget, so the decision does not require any adjustment of the budget framework.

Approximately 40-60 million euros of unallocated funds are usually left for parliamentarians to allocate for Christmas.

A refund of approximately € 19 million will be covered by a reduction in the lottery tax rate. This allows the gambling monopoly to pay most of the profits to the beneficiaries. Tax revenues are expected to decrease by about € 80 million this year due to early tax adjustments, but the government has agreed to further reduce the tax rate and add another € 19 million to Veikkaus’s profits.

Therefore, the government will have to borrow about 19 million euros to make up for the decline in tax revenues.

The remaining € 12 million comes from Veikkaus’ financial buffer created when the gambling company absorbed Fintoto and Ray in 2017. Funds from the buffer are allocated annually to support social and medical institutions.

Approximately 115 million euros out of the 300 million euros in the buffer will be allocated for various purposes this year, with plans to allocate an additional 50 million euros in 2022. A government decision will further reduce the buffer by € 12 million. Less than 125 million euros by 2023.

Aleksi Teivainen – HT

https://www.helsinkitimes.fi/finland/finland-news/politics/20204-finnish-government-to-compensate-fully-for-drop-in-gambling-derived-funding.html Finnish government fully compensates for gambling-derived funding decline

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