Fiscal risks working group meeting 20 August 2020
The Fiscal Discipline Council's Fiscal risks working group held a meeting in which approved the fiscal security reserve in the amount of 0.1% of GDP for 2021 as adequate. In the current situation, there are too many legal, macroeconomic, and fiscal unknowns; therefore, the working group is currently postponing its opinion on the required size of fiscal reserve for years 2022 and 2023.
The working group noted that in view of Article 33 of the Covid-19 Infection Management Act, which essentially removes the expenditure ceiling of the state budget for the 2021, the fiscal security reserve is formal in the context of the 2021 budget, but the fiscal risks declaration is an essential tool for financial management and its importance is only growing.
Fiscal discipline council will analyse the Fiscal risk declaration in more detail in its surveillance report.
The minutes of the meeting are available here.