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Strategy and policy
Reform Support

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

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

Establishing a well-functioning process for conducting regular spending reviews will increase the capacity of the Ministry of Finance of Estonia and Finland to ensure the sustainability of public finances and the creation of additional fiscal space. 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.

Context

Governments across the EU 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 EU 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 EU analyse the Member States’ fiscal and structural policies.

Support delivered

PwC will provide consultancy services to DG REFORM to assist in the implementation of technical support projects by provisioning recommendations and guidance to the Ministries of Finance in Estonia and Finland. The aim is to integrate regular spending reviews and, in Estonian case also, policy evaluations into the medium-term budgetary framework by carrying out the following core activities: 1) seminars on good practices; 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, and the expected end date is August 2025.

Results achieved

The project has 2 outcomes: 

  1. Increased knowledge and evidence base for the Finnish Ministry of Finance to design and implement a regular spending review process, linked to policy evaluations 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 a long-term these outcomes should contribute towards the increased ability of the Ministries to establish well-functioning processes for conducting spending reviews and, through the use of structured spending reviews, increase their capacity to ensure the sustainability of public finances and the creation of additional fiscal space.

More about the project

You can read the documents related to the project here: