How is 27 billion euros in social and health care funding allocated?

The state provides the wellbeing services counties with approximately 27 billion euros in funding each year. The amount is substantial: it accounts for roughly one third of the state’s total annual budget. By comparison, expenditure on basic education amounts to around six billion euros per year.

“The total amount of social and health care funding has increased rapidly in recent years and will continue to grow over the next few years. The main reason is population ageing,” says Tuukka Holster, Senior Specialist at THL.

Read more about how social and health care funding is allocated
 

The demographic funding model

The wellbeing services counties are responsible for organising social and health care services for their residents. State funding allocated to the counties is based on service needs. These needs are mainly determined by the morbidity of the population.

An alternative often proposed is the demographic funding model. What does it mean, and what are its advantages and disadvantages? THL Senior Researcher Konsta Lavaste explains.

About the topic in more depth

Wellbeing services counties receive 400 million euros based on the promotion of health and well-being

The amount of state funding for social and health care allocated to wellbeing services counties is largely based on residents’ service needs, which are assessed on the basis of morbidity.

THL plays a significant role in calculating social and health care funding

THL maintains and updates the data basis used to calculate the population’s service needs and defines the needs coefficients on the basis of which each wellbeing services county receives its needs-based share of social and health care funding.

Background explained: Frequently asked questions on social and health care funding

Organisers of social and health care services need sufficient funding to cover the costs arising from the organisation of social and health care services.

Client fees in social welfare and health care may increase at a higher rate in the future – Government wants to link the fees to the wellbeing services county index

At the end of April, the Government submitted a draft proposal for amendments to the legislation on social welfare and health care client fees, and the amendments have not garnered much public attention so far. One of the proposed...

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The wellbeing services counties’ service needs forecasting tool

With the wellbeing services county service needs forecasting tool, counties can forecast developments in service needs and their impact on costs.

Forecasts of service use and costs are presented in the tool as charts and tables. The data are presented both by wellbeing services county and at the national level.

The forecasting tool supports the county’s long-term strategic planning and the need to allocate resources on a needs-based basis. Using the tool, county management gains insight into how changes in the age structure affect service needs.

Key benefits of the tool include:

  • Improved preparedness and ability to anticipate regional changes in service needs.
  • Wellbeing services counties gain national benchmark data on other regions.
  • Better visibility into cause-and-effect relationships in service development.
  • Improved needs-based allocation of resources.
  • Greater predictability of future funding needs.

Download the wellbeing services counties’ service needs forecasting tool (xls 40 MB)

News item

THL granted an award to Children of the Station and the Cancer Society of Finland for their significant work to promote public health

The 2026 Public Health Award has been granted to Children of the Station and the Cancer Society of Finland in recognition of their significant and long-term efforts to promote the health and wellbeing of children and young people.

Statistics

Access to treatment

Explore THL’s statistics on access to treatment.

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Newsletters

Our newsletters and network bulletins provide up-to-date information on health and wellbeing for decision-makers and influencers, professionals in the social and health care sector, and experts in various fields.

Statistics

Social welfare and healthcare finances

Real per-capita net operating expenditure increased the most in disability services. In 2024, the net operating costs of healthcare and social welfare amounted to EUR 24.6 billion. The per capita costs were EUR 4,395.