Fiscal policy audit

Fiscal policy audits provide information on the preparation of fiscal policy and on related steering instruments and decision-making. The information can also be used in the development of public administration, in fiscal policy-making and in public debate.

The results of the audits are reported to Parliament in audit reports. Fiscal policy auditing is carried out through separate audits and continuous auditing.

What is fiscal policy?

Fiscal policy has an impact on central government expenditure and revenue and their balance. Through fiscal policy, the state aims to safeguard the sustainability of central government and general government finances, while also steering the national economy in the desired direction through the management of public finances.

The fiscal policy objectives are decided in the Government Programme. In addition to the Government Programme, fiscal policy is steered by the national and EU fiscal rules.

Progress towards the fiscal policy objectives can be monitored through the General Government Fiscal Plan, which is issued annually by the Government. The General Government Fiscal Plan also includes the central government spending limits. The Government submits the state budget and any necessary supplementary budgets to Parliament within the spending limit.

The focus of fiscal policy audits

Fiscal policy audits focus primarily on the preparation of fiscal policy, its information base, and the functioning of the national fiscal framework. The audit task also includes, as stipulated by law, ex-post assessment of the reliability of the Ministry of Finance’s forecasts.

In fiscal policy audits, the NAOF audits, for example,

• whether the information and reasoning used in the preparation of fiscal policy, fiscal policy decisions and fiscal policy monitoring are reliable and adequate
• whether the Government and the central government provide Parliament with the fiscal policy information that it needs in a reliable and timely manner
• whether the fiscal policy steering instruments are effective from the perspective of the achievement of the fiscal policy objectives.

Fiscal policy audit is a separate audit type, but it is mainly carried out using the methods of performance audit.