budjettikehyksen

Budjettikehyksen is a multi-year budget framework used in public financial management in Finland and other Nordic countries to guide the preparation, approval and execution of the public budget. It consists of rules, targets and assumptions that shape how resources are allocated over several years, rather than only in the current year. A typical budjettikehyksen covers a planning horizon of three to five years and establishes ceilings on expenditures by ministry or program, as well as assumptions about revenue, inflation and economic growth. It also includes targets for debt, deficits or surpluses, and rules for adjustments, carry-overs and one-off measures.

The framework serves as the central anchor for the annual budget process. It is usually prepared by the finance ministry or equivalent central authority, negotiated with the government, and presented to the parliament as part of the budget package. Line ministries prepare proposals within the set ceilings, and the budjettikehyksen ensures consistency between policy priorities, resource limits and fiscal targets.

Benefits include greater fiscal discipline, predictability for public programs, and improved transparency and strategic planning. Challenges can include political pressures, changing macroeconomic conditions, and tensions between short-term electoral considerations and long-term sustainability. The exact form and legal status of a budjettikehyksen varies by country, but the concept generally serves to coordinate multi-year budgeting with macroeconomic planning.

See also: multiannual financial framework, fiscal rule.