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Within the limits of the state budget, a political party represented in Parliament may be granted a party subsidy from government funds for financing the party's public activities specified in its rules and regulations and the party programme. Party subsidies are allocated to the parties in accordance with the number of parliamentary seats each party has gained in the latest parliamentary elections. If, in the period between parliamentary elections and before the publication of the state budget in any budgetary year, at least half of a party's parliamentary representatives have notified the Speaker of Parliament of their ceasing to represent the party in question in Parliament, the allocation of the subsidy shall be adjusted to correspond with the new situation. Part of the party subsidy may be used to finance the activities of another association.

In addition to the parties referred to in Subsection 1, a party subsidy is also granted to a political party reported to the Speaker of Parliament by a representative, elected as a candidate for a joint list or a constituency association in the last parliamentary elections, as the party he or she wishes to represent, and which continues the political activities of the voter group that formed the joint list or established the constituency association. However, this requires that the party in question not have been entered in the party register before the statutory date stated in the act on elections of members of Parliament (714/1998), when the Ministry of Justice for the purposes of the above-mentioned elections must notify the central election committees of the electoral districts the parties entered in the party register. The party subsidy is granted, as appropriate, in accordance with the allocation grounds laid down in Subsection 1.

The party subsidy is granted by the Council of State, upon application. The party subsidy is paid by the Prime Minister's Office.

In other respects, the granting, payment, and use of a party subsidy is governed by the provisions of the Act on Discretionary Government Transfers (688/2001).

See the decree on party subsidies granted to support the activities of political parties, 27/1973, section 1.