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Integrating regular spending reviews and policy evaluations into the medium-term budget framework in Estonia and Finland

Banner image for the The European Commission provides technical support to Estonia and Finland in integrating regular spending reviews, and, in Estonian case, policy evaluations into the medium-term budgetary framework

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Funding Programme
Year
  • 2023

Regular spending reviews as a tool for achieving fiscal sustainability and efficient policymaking

Establishing a well-functioning process for conducting regular spending reviews will increase the capacity of the Ministries of Finance of Estonia and Finland to ensure the sustainability of public finances and creation of additional fiscal space. The European Commission provided technical support to Estonia and Finland in integrating regular spending reviews, and, for Estonia, policy evaluations into the medium-term budgetary framework.

Context

Governments across the European Union face the challenge of enhancing the quality of public finances to create fiscal space for resource allocation to priority areas. Implementing spending reviews emerges as a proven tool to optimise public finances, support strategic investments and ensure medium-term fiscal sustainability. The European Commission promotes the use of spending reviews among the Member States through studies and thematic discussions. The Commission has encouraged Member States to engage in spending reviews as part of the European Semester - the annual cycle, where the European Commission and the Council of the ELI analyse the Member States' fiscal and structural policies.

Support delivered

The provider provided consultancy services to SG REFORM to assist in the implementation of technical support projects by provisioning recommendations and guidance to the Ministries of Finance of Estonia and Finland The aim was to integrate regular spending reviews and, for Estonia, policy evaluations into the medium-term budgetary framework by carrying out the following core activities: 1) good practices seminars; 2) technical reports on spending reviews design and implementation; 3) manual on spending reviews (for Estonia only); 4) capacity-building and facilitation events (for Estonia only). The project started on 2 October 2023, ended in October 2025.

Results achieved

  1. Increased knowledge and evidence base for the Finnish Ministry of Finance to design and implement a regular spending review process, linked to policy evaluation and to medium-term budgeting.
  2. Improved evidence-based policymaking, through supporting the Estonian Ministry of Finance in developing systematic processes for policy evaluations, to increase the synergies between spending reviews and evaluations within the medium-term budget framework.

In the long term these outcomes should contribute towards the increased ability of the Ministries to establish well-functioning processes for conducting spending reviews and increase their capacity to ensure the sustainability of public finances and creation of additional fiscal space.

More about the project

You can read the documents related to the project here: