Five Countries, Five Models – A Comparison of Fiscal Frameworks and Lessons for Finland

Begg IainKuusi TeroKylliäinen Olavi


In recent years, many countries have sought to transform their fiscal frameworks, with the aim of rendering their public finances more sustainable and preventing the emergence of fiscal problems. This report presents the findings of comparative research into the fiscal frameworks of five countries (Denmark, Ireland, the Netherlands, New Zealand and Sweden). All five countries have developed effective fiscal frameworks in the last two decades, and it is evident that they reflect both reactions to past episodes of fiscal laxity and the fostering of a broad consensus on the necessity of a more disciplined and robust framework.

There are noteworthy differences of approach, with the implication that rather than there being an optimal framework, successful ones can take different forms. It is never easy to transplant what works in one national setting to another, but there are several insights from experience in the comparator countries which could help to enhance the Finnish fiscal framework.

See also publication General Government Fiscal Frameworks and Their Development Needs in Finland.

Publication info

Results of research
Operation and development needs of the public finance framework system
Research group
Macroeconomy and public finances
ETLA Working Papers 102
Fiscal policy, Fiscal rules, Expenditure ceilings
2323-2420, 2323-2439 (Pdf)
E62, H30, H61, P52