Fiscal policy monitoring

The task of NAOF is to monitor compliance with the Fiscal Policy Act (869/2012) and the provisions issued under it and the setting and implementation of the rules steering the Government’s fiscal policy. The monitoring promotes transparent and intelligible fiscal policy regulation and stable and sustainable general government finances.

The NAOF monitors and assesses:

  • the drafting and implementation of the General Government Fiscal Plan

  • compliance with the Stability and Growth Pact and the applicability of EU rules to Finland

  • adherence to the medium-term budgetary objective (MTO) and its correction mechanism

  • credibility of the macroeconomic forecasts used as a basis for fiscal policy and the reliability of the macroeconomic and fiscal forecasts.

The NAOF reports on the findings of the fiscal policy monitoring twice a year. Since 2017, the NAOF has also produced regular ex-post assessments of the forecasts on the basis of the Government Decree on the General Government Fiscal Plan. The Government must either defer to the opinions publicly adopted by the National Audit Office or publicly state why not.