talouskehys

Talouskehys, in Finnish public finance terminology, refers to the multi‑year framework used to plan and steer public finances and macroeconomic policy. It sets the long‑term resource constraints and priorities that guide annual decisions, with the aim of ensuring fiscal sustainability, transparency and policy coherence. The concept is used by governments to connect economic assumptions, revenue projections, and spending plans over a multi‑year horizon.

A typical talouskehys includes several elements. Macroeconomic assumptions (growth, inflation, unemployment, interest rates) form the basis for revenue and spending projections. Expenditure ceilings or envelopes are established for ministries or programs over a multi‑year period. The framework may specify targets for government debt, deficits or balances and sometimes for structural balance. It also often contains contingency reserves, defined reform or investment priorities, and measurable performance indicators to monitor progress. The process is usually led by the finance ministry or treasury, prepared in consultation with line ministries, and approved by the legislature, with annual revisions as conditions change.

Relation to the annual budget is functional rather than procedural; the talouskehys provides the long‑term constraint and direction within which the annual budget is drafted and adopted. In the European context, analogous concepts include the European Union’s Multiannual Financial Framework, which sets long‑term budgetary envelopes for EU expenditures. Overall, talouskehys aims to enhance fiscal discipline, predictability, and alignment of policy goals with available resources.