With improved employment, Helsinki received just over €3 billion in municipal tax, €79 million more than expected in the budget. Municipal tax revenue increased by 7.4% from 2021.
In 2022, corporate taxable income in the country as a whole increased by significantly more than the government estimate in autumn 2021. Helsinki received €775 million in corporation tax, 6.7% more than in 2021.
Annual margin better than budgeted but lower than last year
According to the financial statements of the City of Helsinki, the annual margin was €733 million. The margin was €336 million better than budgeted, but still slightly below the previous year's level. The annual margin was boosted by higher-than-budgeted tax revenues. Annual margin means the revenue funding that remains available for investment and loan repayments after the financing of services.
In 2022, the coronavirus pandemic caused less income losses and less additional expenditure. Helsinki received a state subsidy to offset the impact of the pandemic. State subsidies covered three quarters of the costs, leaving some €24 million in uncovered costs.
Investments amounted to €767 million
The level of investment recorded in Helsinki's financial statements for 2022 is not comparable with previous years due to the incorporation of HKL. The investment expenditure of the city and municipal enterprises was €1,032 million. Taking into account the incorporation, the comparable level is €767 million, which is €107 million below budget. The rising construction costs and tender prices postponed the implementation of investments to the coming year.
Cash flow from operations and investments amounted to €485 million in the financial statements. Cash flow from operations and investments comparable with previous years was €9 million in deficit (€90 million in 2021). The transfer of assets related to the incorporation of HK's operations resulted in investment expenditure and proceeds from the disposal of the assets. However, the cash flow from operations and investments was significantly better than budgeted as a result of a better annual margin and lower investment levels. The internal financing rate of investments rose to 97%. The internal financing rate of investments shows how much of the cost price of investments is financed by internal financing.
Loan portfolio per capita €1,431
In 2022, Helsinki raised €115 million in new loans. At the end of 2022, the loan portfolio stood at €951 million, an increase of €38 million from 2021. Loans per capita amounted to €1,431.
City Group profit approximately EUR 451 million
Helsinki City Group's profit for 2022 was about €451 million. The result improved over 2021 by approximately €66 million. The contribution of subsidiaries and municipal federations to the City Group's profit was €104 million.
The combined investment level of the subsidiaries and municipal federations recorded in Helsinki's consolidated financial statements was €1,955 million, almost double the previous year's level (€996 million in 2021). The increase in the level of investment by subsidiaries since 2021 is due to, among other things, the increase in the level of investment in the Helen Group. Taking into account the City Group's investments, the cash flow from operations and investments in 2022 was €671 million in deficit and €340 million below the 2021 level.
