Baltic-Finnish fiscal supervisors are critical towards the flexibility of fiscal discipline assessments  16 June 2017

Baltic-Finnish fiscal supervisors are critical towards the flexibility of fiscal discipline assessments

On 16 June 2017 in Tallinn, at National Central Bank of Estonia, for the third time there have met Baltic-Finnish Independent Fiscal discipline institutions. At the annual meeting there have been discussed topical issues of the budget and fiscal policy analysis process of our neighbouring countries.

Topics related to the fiscal sustainability were on (a) state net worth assessment, dealing with each of public finance levels (general government, central government, local government and pension funds) and also the impact on the government debt sustainablity; (b) no-policy change scenario content scope issues; (c) macroeconomics econometric model, where the supply side is determined by long-run equilibrium but the short-run dynamics follows the demand side, application to the assessment of medium term macroeconomics forecast and state convergence pace.

Topics related to the fiscal discipline were more critical towards the flexibility issues of the Stability and growth pact and towards the consequences to the countries fiscal policies, incl. Innovations in fiscal rules application ex ante and ex post assessments of the medium term budget framework. One of the conclusions of the meeting was about the necessity to facilitate the transperancy and simplicity in the supervision process of the medium term budget planning and execution monitoring. In the meeting there was discussion also the communication practice and other technical matters.