The new government will have to swiftly define its policy priorities, specify how they will be financed, and ensure that the announced measures are properly incorporated into the relevant fiscal planning documents. The decisive factor in ensuring fiscal sustainability will be the selection and effective implementation of the measures, rather than the ambition of the pre-election announcements themselves.
Against the backdrop of heightened expenditure pressures and uncertainty, fiscal policy cannot afford to diverge any further from the goal of maintaining medium-term fiscal sustainability. It is crucial that future decisions are based on credible assumptions and clearly defined measures, and that fiscal challenges are addressed promptly.
The Fiscal Council, therefore, expects the government to establish a framework that is transparent and sustainable over medium-term from the outset of its mandate. Only on this basis will it be possible to maintain the stability of public finances and trust in the country’s economic policy, as well as the capacity to finance key developmental, social, and security tasks.
Within its mandate, the Fiscal Council will continue to independently assess whether fiscal plans and policy measures contribute to the transparency, credibility and sustainability of public finances.
Following the formation of the government, and in accordance with established practice, the Fiscal Council will propose an introductory meeting with the Prime Minister and the Minister of Finance. The Fiscal Council will also propose presenting its activities to the parliamentary groups of the National Assembly and to the members of the Committee on Finance.