Functions and activities of the Fiscal Council

The Fiscal Council is an advisory body charged with assessing Estonian fiscal policy. The Council assesses the macroeconomic and monetary forecasts of the state and how well the budget rules are followed, in accordance with the requirements in the State Budget Act and European Union law.

For this purpose, the Council:

gives an opinion on the government’s macroeconomic and fiscal forecasts;
gives an opinion on the achievement of the target for the general government structural budget position;
gives an opinion on the achievement of the target for the general government structural budget position reflected in the State Budget Strategy and the stability programme before they are approved;
collects the data and explanations that it needs for its work from ministries, government institutions and Eesti Pank;
drafts decisions and opinions on matters that fall within its remit;
informs the public of its position on the observance of domestic budget rules and on the economic and fiscal forecasts used as a basis for fiscal policy.

The legal basis for the Fiscal Council is the State Budget Act passed by the Riigikogu. Under European Union law a similar sort of council needs to be set up in each member state of the euro area. The Fiscal Council acts independently in the execution of its duties and does not accept guidance from Eesti Pank, the government or any other bodies from the public or private sectors. The government must justify to the public any failure to take account of the opinion of the Fiscal Council.

The Fiscal Council meets whenever necessary, but at least five times a year. The Council has six members. The Council’s Chair, Vice-Chair and four members are nominated to office for a period of five years by the Eesti Pank Supervisory Board at the proposal of the Governor of the central bank.

The assessments and opinions of the Fiscal Council are published on its website.

Regulations governing the Fiscal Council: