Drastic cuts in Finnish budget for 1993

Development Today reported in May 1992 that Finland’s coalition government levelled down the aid budget for 1993 to 0.4 per of GNI compared to 0.76 per cent of GNI in 1991.

The aim of the austerity programme was to save FIM 10 billion and thereby reduce the heavy external borrowing that had made Finland one of the most indebted Western European countries on a per capita basis.

Development aid could hardly have remained untouched, and Finnish ODA fell from FIM 3.7 billion to FIM 2.1 billion over 1991-3. The 10 per cent share borne by the aid portfolio was viewed as a reflection of the weak negotiating position of then Development Minister Toimi Kankaanniemi (Christian League).