The Budget

Formulation of the Budget

The formulation of the Budget begins in January, when the ministries’ spending proposals are submitted to the Ministry of Finance. The spending proposals are part of the ministries’ and agencies’ multi-year operational and financial planning. The Ministry of Finance then compiles the central government spending limits for the following years, which the Government approves in March-April as part of the General Government Fiscal Plan.

Budget preparation continues in the ministries, based on the General Government Fiscal Plan and instructions by the Ministry of Finance. Drawing on the plans of the agencies and institutions in their administrative branches, the ministries prepare their budget proposal, which is submitted to the Ministry of Finance in May.

The budget proposals of the administrative branches are reviewed in the Ministry of Finance during the spring and summer. The Minister of Finance decides on the Ministry of Finance’s budget proposal in July-August and submits the proposal to the ministries. The proposal is also published on the Ministry of Finance’s website.

Government budget session

Based on the Ministry of Finance’s position, the Minister of Finance conducts with the relevant ministers in each ministry a negotiation round that aims to resolve any differences of opinion about the level of appropriations. After the negotiation round, the Government reviews the budget proposal prepared by the Ministry of Finance in its budget session, which lasts for a couple days. In the budget session, the Government approves the content of its budget proposal.

Parliament approves the Budget in December

The Ministry of Finance finalises the government’s budget proposal, after which it is presented to the Government in plenary session. The proposal is submitted to Parliament for consideration at the beginning of the autumn session. The Budget is adopted in a plenary session of Parliament in December, after the Finance Committee has issued its report on the proposal.

Supplementary budgets adopted if necessary

If changes to the adopted Budget are required, the Government may make a supplementary budget proposal. Supplementary budget proposals are prepared and considered in much the same way as the Budget itself.