HELSINKI, May 2 (Reuters) - The Finnish government plans to sell 460 million euros ($638 million) worth of shares its investment fund holds, to finance spending and to reduce the need for borrowing, the finance ministry said on Friday.
The Finnish state investment fund, Solidium, is worth 8.2 billion euros. Its most valuable holdings are a 12 percent stake in the insurance and investment firm Sampo and a 10 percent stake in telecoms operator TeliaSonera. The finance ministry did not say which shares it plans to sell.
In its first supplementary budget for the year, the finance ministry also cut its estimate for tax income by 190 million euros. A sluggish economy has caused retail sales to fall short of earlier estimates.
Overall, the supplementary budget adds 100 million euros more income than spending. That amount will be used to reduce new borrowing.
After the supplementary budget, the central government should need to borrow 7.0 billion euros this year. Finland's GDP was 193 billion euros last year.
The government will discuss the supplementary budget on May 20, after which it will go to parliament. ($1 = 0.7212 Euros) (Reporting by Sakari Suoninen; Editing by Larry King)