Fjárlaganefndarferli

Fjárlaganefndarferli refers to the process in the Icelandic parliament (Alþingi) by which the annual state budget and related financial matters are prepared, reviewed and approved through the work of the Finance Committee (fjárlaganefnd). It is a central mechanism for fiscal governance and parliamentary scrutiny of public finances.

Preparation of the budget typically begins with the government, led by the Ministry of Finance, drafting the fjárlag or budget proposal for the coming year. The proposal outlines projected revenues, expenditures by government ministries and agencies, and any tax measures or other fiscal policy changes. The finished fjárlagafrumvarp is submitted to Alþingi for consideration.

During the examination phase, the fjárlaganefnd analyzes the budget proposal, conducts hearings with ministries, agencies and other relevant bodies, and evaluates macroeconomic assumptions, policy implications and budgetary priorities. The committee may request additional information and produces an explanatory report or recommendations, commonly referred to as an fjárlaganefndarálit, which guides further discussion.

Amendments and approval of the budget follow the committee stage. Members of Alþingi can propose changes to appropriations or policy measures, and the committee’s recommendations shape plenary debate and the final decision. The outcome is a budget law and related financial instruments for the coming year.

After approval, the budget is implemented by the various ministries, with ongoing oversight by the fjárlaganefnd. The committee monitors execution, reviews revenue performance and spending, and can initiate mid-year adjustments or investigations to ensure transparency and accountability in public finances.