Substantial cuts are threatening the financing of sports and physical activity in the next few years. In its draft budget, Finland’s Ministry of Finance plans to reduce the budget for sports and physical activity by approximately EUR 17 million next year. The budget would be roughly 11 per cent lower, or approximately EUR 147 million. The cuts anticipated in 2026 are even greater than this. All in all, the budget reserved for sports and physical activity would be reduced by almost one third during the Government’s term of office.
Meanwhile, the rising rate of value added tax on sports and exercise services will increase the cost of physical activities and hobbies and weaken the operating conditions of sports clubs and companies in the field of sports and physical activity. These cuts and tax hikes are proposed at the same time as the Government Programme sets the goal of increasing physical activity among Finns.
– We understand the need to adapt the national economy. However, sports and physical activity generates benefits running into billions of euros for Finland. Even as we face the need to cut spending, sports and physical activity should be seen as an investment that allows us to keep Finns healthier and able to pay their taxes, while also reducing social and health care costs. It is sad to see how poorly our society recognizes and appreciates the importance of preventive measures for strengthening the public economy, says President of the Olympic Committee Jan Vapaavuori.
– Very few industries are facing cuts this large in percentage terms. The budget for sports and physical activity constitutes less than two thousandths of the state budget, so it is impossible for the government to achieve the desired savings by imposing cuts in an industry this size. It is unsustainable and unreasonable if the sports and physical activity sector faces larger cuts than other branches of central government, says Vapaavuori.
According to the proposal of the Ministry of Finance, next year’s cuts to discretionary government grants would be directed at the construction of sports facilities (EUR -16.4 million). This is a substantial reduction, as just last year, more than EUR 30 million were spent on the construction of sports facilities, whereas now, the proposed sum is only approximately EUR 10 million. In addition, clubs would receive less financial support (EUR -0.5 million), meaning that EUR 2 million would be left to support clubs, about half of the amount in previous years. However, the draft budget of the Ministry of Education and Culture has yet to determine how the cuts to discretionary government grants would be divided.
According to the General Government Fiscal Plan, additional cuts of EUR 75 million can be expected in 2026 and these are yet to be divided between the administrative branches of the Ministry of Education and Culture. This would still mean cuts of approximately EUR 20 million to the sports and physical activity budget.
The sports and physical activity community calls on the budget session to avoid risking the wellbeing of Finns and the future of Finnish sports and physical activity with these cuts. The cuts to sports and physical activity must be moderated and new sources of financing and means to support physical activity, exercise and sports should be explored and adopted.
– We need to act fast to extend the right to deduct donations from taxes to sports and physical activity, and the exploration of ways to promote physical activity through taxation, as promised in the Government Programme, should begin immediately. In addition, sports sector operators should be taken into account in the reform of the gambling system, and the work of physical activity organizations should be made easier by reducing bureaucracy, says Taina Susiluoto, CEO of Finnish Olympic Committee.
– The active discussion after the Olympics has shown that Finns yearn for success in elite sports. This should also be reflected in investments in both public and private funding, to bring Finland back to the podium, says Susiluoto.
The Government will decide on the cuts in its budget session on 3 and 4 September.