Fiscal policy monitoring supports stable and sustainable public finances and makes fiscal rules more transparent and comprehensible. Fiscal policy audit, in turn, supports these objectives by providing decision-makers with useful information on the preparation of fiscal policy and its knowledge base.
The NAOF is responsible for monitoring compliance with fiscal rules as well as the setting and implementation of fiscal targets.
The NAOF’s fiscal policy monitoring function assesses, for example:
the drafting and implementation of the General Government Fiscal Plan
compliance with the central government’s spending limits
compliance with the EU’s Stability and Growth Pact and the applicability of EU rules to Finland,
compliance with the medium-term objective (MTO) set for general government finances and the related correction mechanism
the reliability of the macroeconomic and budgetary forecasts on which fiscal policy is based
the fiscal stance in relation to the business cycle.
As regards fiscal policy, the National Audit Office also audits:
the reliability of information used in decision making
the functionality and effectiveness of steering instruments
whether the picture given of the financial position of the central government and the sustainability of general government finances is true and fair.
Publications by the fiscal policy monitoring and audit functions
The fiscal policy monitoring function reports its assessments twice a year, in May–June and in December.
The fiscal policy audit function completes one to two fiscal policy audits each year. The fiscal policy audit function also produces information for fiscal policy monitoring.