Baltic-Nordic fiscal watchdogs share their experience already the fourth time  11 June 2018

Baltic-Nordic fiscal watchdogs share their experience already the fourth time

On 11 June 2018, in Rīga, at EU house, the Baltic-Nordic independent fiscal institutions for the fourth time. At their annual meeting each institution has shared their topical issues and received immediate and valuable comments from their colleagues of the neighbouring countries. This year, for the first time, the Swedish Fiscal Policy Council has also participated and provided insight into both the strength and the limitations of its mandate, as well as the recent achievements in debt anchoring to 35% of GDP.

Lithuanian colleagues shared their excellent experience working with the budget revenue side forecast error estimation by decomposing each tax error component and evaluating the statistical significance of these components. In addition, Lithuanians were briefing on their latest experience this past year giving their assessment to the Stability Programme.

Estonian colleagues demonstrated a handy tool developed this year, which further assesses the economic cycle - a macroeconomic heatmap that helping in an easily manner highlighting "cooling" or "healing" of different economic indicators. Estonian colleagues also shared their view on the role of EU funds in the development of the country economy.

The Finnish independent fiscal authorities, in turn, spoke about  their approach endorsing the macroeconomic forecasts prepared by the Ministry of Finance, as well as providing detailed information on the methods of mathematical statistics used in this exercise. In addition, a Finnish colleagues spoke about the need to critically assess the country's fiscal sustainability by being able to establish at a debt level, so that public finances are able to sustain one of today's challenges not related to the financial crises – the aging population.

In turn, the Latvian Fiscal Council informed about the need for more accurate qualification of a public private partnership projects and the importance of quantifying such fiscal risks. In addition also informing about the local governments fiscal framework in Latvia.

At the end of the meeting, Lithuanian colleagues invited to the fifth Baltic-Nordic meeting in Vilnius next summer.

Meeting materials are available here.