Spending limits in central government finances and the budget
At the beginning of the parliamentary term, the Government decides on a framework, i.e. a ceiling for budget expenditure, and rules for the framework procedure. The spending limits for the parliamentary term determine the policy for expenses over the whole four-year term. These limits are outlined in the first General Government Fiscal Plan. Each year in March-April, the Government revises the allocation of budget resources within the framework set out in the General Fiscal Plan and updates the framework to meet changes in cost level, prices and the structure of expenses in the scope of the spending limits.
The Budget is a plan for the state economy and financial administration. Budget planning begins in spring following the completion of the General Government Fiscal Plan, on which it is based. The proposal is negotiated in the Government's budget debate in August. The Parliament approves the Budget for the next budget year before the previous budget year ends.
The state can take out a loan subject to the approval of Parliament. The Ministry of Finance is responsible for the strategic steering of the management of the State's on-budget debt portfolio. The State Treasury is responsible for the financing operations.