Public finances

Government income accrues from taxes and other payments while expenditure is derived from performing government tasks, paying benefits to individuals, and making payments to local authorities for the provision of services to which people are entitled.

The annual framework for government finances is set out in the Budget which is drawn up under the leadership of the Ministry of Finance and approved by Parliament. The Ministry of Finance handles Government finances and monitors adjustments to the budget and its implementation and manages government cash reserves.

Government assets are administered by different ministries. The legality of financial administration by central government is supervised by the Parliamentary State Auditors and the National Audit Office of Finland.

The Government can borrow money when required. Decisions on taking loans are made by Parliament and in practice government debts are managed by the Ministry of Finance and the State Treasury.

Financial monitoring is necessary when planning the Budget and other financial arrangements. The national economy is monitored by the Ministry of Finance and various research institutes.