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Government submits written communication on new fiscal policy framework
The Government has now submitted a written communication to the Riksdag on the new fiscal policy framework. The Government’s account of how it intends to apply the framework helps to strengthen confidence in developing and reporting on fiscal policy. It improves the conditions for ensuring that fiscal policy has the intended effect.
The fiscal policy framework comprises various parts related to fiscal policy and methods for follow-up, evaluation and transparency. In June 2016, a cross-party agreement was concluded on changes to the fiscal policy framework. These changes were presented by a cross-party committee of inquiry in autumn 2016.
As a result of the agreement, the surplus target was changed beginning with the budget work for 2019 from 1 per cent to one third of a per cent of GDP on average over a business cycle. A debt anchor of 35 per cent of GDP for the Maastricht debt was also introduced.
The written communication that the Government submitted to the Riksdag on 12 April contains a cohesive description of the framework.
About the fiscal policy framework
The budget policy objectives for fiscal policy are a central part of the fiscal policy framework and consist of:
- a surplus target for the entire general government sector,
- a central government expenditure ceiling,
- the requirement for the local government sector to maintain balanced budgets, and
- a debt anchor of 35 per cent of GDP for the Maastricht debt.
These objectives, together with a disciplined central government budget process, external monitoring and transparency, comprise the central parts of the fiscal policy framework.
Press Secretary to Minister for Finance Magdalena Andersson
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