kuntasektori

Kuntasektori is the local government sector in Finland, comprising municipalities and joint municipal authorities that provide local public services and manage public assets. It is a major employer and a key level of governance, operating under the principles of local self-government.

Structure and governance: Municipalities are self-governing units with elected councils (valtuusto) and executive bodies (kunnanhallitus). A municipal manager or city manager (kunnanjohtaja / kaupunginjohtaja) heads day-to-day administration. Many services are organized through joint municipal authorities (kuntayhtymät) to share resources for specialized needs such as health, social services, education, or infrastructure.

Responsibilities: The sector delivers education (including early childhood education and basic education), social services, health services, child protection, elderly and disability care, housing and regional planning, environmental protection, waste management, and culture and recreational services. Local governments also oversee infrastructure such as roads, water supply, and land use.

Financing: Funding comes mainly from municipal tax revenue and state subsidies, supplemented by user fees and investment financing. State funding includes transfers designed to reduce disparities between municipalities. Financial decisions are guided by municipal budgets and multi-year plans.

Reform and current issues: In recent years Finland has restructured health and social services, moving many functions to well-being services counties (hyvinvointialueet) while municipalities retain local tasks and planning. The sector faces challenges including aging populations, rising demand for services, staffing shortages, and the need for digitalization and efficiency gains through inter-municipal cooperation and procurement reforms.

See also: List of municipalities of Finland; Health and social services reform.