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Central and local government are the basis of Finnish democracy, and, from the point of view of citizens making use of their democratic rights, the two are of equal importance. At the beginning of 2009, there are 348 municipalities, 16 of which are in the Åland Islands.
Finland’s municipalities are self-governing entities, which, under Finnish law, have the right to decide on their own matters. The municipalities also have the power to levy taxes. In fact, the municipalities and local government are the most extensive and important system of self-government in Finland.
The history of local self-government in Finland goes back for more than one thousand years and it is strengthened and protected by the country’s constitution. The State does not have any unlimited rights to interfere in the activities of self-governing entities, for example, by introducing special legislation.
Municipalities are responsible for providing their residents with statutory basic services. By enacting laws, the state has the right to be involved in decisions that affect the organization of basic local services. The most important of these are social welfare and health, education and culture, the environment, and technical infrastructure. Basic municipal services provide residents with fundamental security, a sound basis for everyday living, and a social safety net. These basic services are mainly funded through local taxation, contributions from the state and charges for the services in question.
Local self-government is on the basis of political decision-making and municipalities must adhere to democratic principles.
The municipal council is the supreme decision-making body in a municipality. Its members are elected for a four-year term in local elections which are based on universal suffrage. The council elects members to the municipal board which is responsible for preparing matters for the council and putting its decisions into effect.
The municipal council also elects members to the municipal committees, which are in charge of providing local public services. The number and responsibilities of the committees vary between municipalities. The most common are the education committee, social welfare and health committee and planning committee. In Finland the customer-producer model is becoming common, with certain boards responsible for ordering services from different producers.
The Act on Restructuring Local Government and Services came into effect in March 2007. The restructuring process, which is due to be completed by 2012, should put municipal services on a sufficiently solid structural and financial basis so that extensive welfare services can be secured in all parts of Finland. The process will have an impact on organizing local-government services, their funding and the division of labour between central and local government.
This diagram shows in highlight the position of local self-government in the structure of the public administration.
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Page updated on 20.07.2010 | Suomi.fi editorial team | State Treasury
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