The news comes as Finland prepares to hold parliamentary elections on 14 April to determine the composition of the nation's 200-seat legislature, the Eduskunta assembly.
Finnish Prime Minister Juha Sipila tendered his centre-right government's resignation on Friday after it failed to push a through a social and health care reform package, the president's office announced.
The populist True Finns, who were in government before splitting from their former ministers who founded a new party, have staged a recovery in recent months to 12 per cent, still below the 18 per cent they recorded in 2015.
He said there was no other way out of the situation hence chose to take responsibility.
President Sauli Niinistö accepted the resignation and asked Mr Sipila's government to continue in office until the elections.
At a later press conference, Sipila said health care had been one of his government's main goals and that he was "hugely disappointed".
In a report by POLITICO, monitored by TUKO.co.ke, on Friday, March 8, the prime minister said his government's failure to implement a health care reform proposal during its current term had pushed him to make the move. The changes were crucial to the three-party governing coalition's plan to balance public finances.
He has since 2015 headed a coalition made up of his Center Party, the conservative National Coalition, and Blue Reform, a moderate faction spun off from the far-right.
Under the health care and social services reform, regional governments would take over the provision of care from local municipalities. But he insisted that Finland "needs a reform", indicating the issue is likely to play a large role in elections and the next government's mandate.
Last year, the latter broke up into two parties after internal divisions over tighter immigration policies.
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