Juha Sipila has been the country's prime minister since 2015 after forming a three-party governing coalition with two other right-leaning parties, including the small populist Blue Reform Party, a group that was once part of the eurosceptic True Finns but split up amid divisions over immigration policies.
The president asked the government to complete its term in office and serve as a caretaker before a new cabinet is sworn in.
Speaking to journalists at a news conference on Friday morning, Sipilä noted that the social and health care reform package and its related system of regional government was his administration's central goal.
Sipila tendered in the resignation letter of his government to President Sauli Niinisto on Friday, March 8.
"Prime Minister Juha Sipila has submitted the resignation of the government to President of the Republic Sauli Niinisto. today", Niinisto's office said in an announcement made just five weeks ahead of legislative elections scheduled for April 14. "I take responsibility for the failure".
Alia Bhatt, Sidharth Malhotra, Vidya Balan & more attend the Ambani wedding
Joining them was Vidya Balan who looked elegant as ever in a white Sari as she arrived with husband Sidharth Roy Kapur. The wedding was held at the Jio World Centre in the Bandra-Kurla Complex.
"Prime Minister Sipilä will request to resign because the health care reform can not be accomplished during this government term", Kaikkonen tweeted.
Finland PM Juha Sipila said the resignation was triggered by the acceptance of the fact that government had failed to implement health reforms during its current tenure.
The planned health care reform was meant to tackle an aging population, improve efficiency and reduce public spending by 3 billion euros ($3.4 billions) by 2029.
Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.
The Social Democrats have been leading opinion polls in the run-up to the election, with Sipila's Centre party trailing in third place at around 15 percent.