Economic impacts of the coronavirus pandemic

The coronavirus pandemic and the ensuing economic crisis are having a major impact on central government finances. The economic measures have been exceptional in scale, and they are changing budgeting priorities. The National Audit Office of Finland (NAOF) continues to closely monitor economic developments and decision-making at central government level during the coronavirus pandemic. Information is collected to keep Parliament up to date and to support future audit work.

The visualisation below, produced by the NAOF, illustrates the economic measures introduced and their magnitude.  The visualisation covers the 2020 Budget and supplementary budgets I-IV/2020. The visualisation also provides an overview of the debts accumulated by central government and the lowering of the revenue estimates as a result of the crisis.

  • Supplementary budget I (Government proposal 20 March 2020): 1.08 billion euros

  • Supplementary budget II (Government proposal 9 April 2020): 3.63 billion euros

  • Supplementary budget III (Government proposal 8 May 2020): 0.88 billion euros

  • Supplementary budget IV (Government proposal 5 June 2020): 4.05 billion euros

 

 

By studying the visualisation, you get an overview of how the Budget has changed during the crisis. Each of the supplementary budgets is shown in a different colour on the expenditure estimates and revenue estimates tabs. Use the dropdown menu on the right of the expenditure estimates tab to view budget changes in individual administrative branches. Place the pointer on the toolbar sections to read more about the way in which the appropriation is allocated.

The visualisation provides information on the economic impacts of decisions taken during the three stages of the crisis management. Especially in the first stage of the crisis, funding was channelled into preparedness and purchases. In the second stage, the focus shifted to supporting citizens, companies and municipalities. The NAOF has already started examining the support measures, using both fiscal policy monitoring and audits.

In the third stage, the Government has started to stimulate the economy. In the examination of the stimulus measures, the focus is, in addition to fiscal policy, also on performance issues: how the stimulus can be targeted so that sustainable economic growth can be ensured.

In the long term, the task of fiscal policy monitoring is to promote balanced and sustainable general government finances, which also provides a basis for economic growth. The focus in fiscal policy monitoring and audit is also on growing central government liabilities (agreed within the framework of business support and EU-level arrangements), which are not shown in the Budget.

You can examine the Budgets and supplementary budgets in the budget compilation produced by the Ministry of Finance (in Finnish) and view the budget proposals submitted to Parliament, reports produced by parliamentary committees, and parliamentary decisions at the website of the Finnish Parliament (in Finnish).