Finnish economy 2040

Public finance simulator

All effects

Maintenance backlog grows

Confidence: Low
On by default
Shape: Growing

When maintenance of roads and railways is cut, repairs get more expensive later and part of the saving returns as a growing cost.

Of every 100 euros that a change to “Transport” saves or brings in, 10 € comes back as extra spending on the line “Economic affairs: transport” in the first year, growing 8% a year, up to 50%. (The other way round if the change adds spending or cuts taxes.)

E(t) = T(t) × sign(s) × min(|s| × (1 + growth)ⁿ, maximum share)

How the effect builds up over time

Share of the change's own effect on the balance, year by year while the change continues: −15% means 15% of a saving comes back as cost (or 15% of extra revenue is lost). With the default values.

You can switch the effect on or off and adjust its assumptions in the simulator under Cause-and-effect chains.