January
Before the start of the budget year...
Work on the budget begins more than a year before the start of the fiscal year concerned, so that work on the 2008 budget, for example, began as early as the end of 2006.
The Ministry of Finance begins by examining the forecasts for economic developments in the coming years. These forecasts are very important in drawing up the budget.
Changes in the prospects for economic growth, price movements, unemployment, the level of interest rates and exchange rates may require measures to ensure that the policy objectives set by the Government and the Riksdag can be achieved.
The Ministry of Finance presents forecasts for the development of the economy to the Government in December. The Government then agrees on the course further work on the Spring Fiscal Policy Bill should take.
In January, the Ministry of Finance continues by reviewing and updating the forecasts. The other ministries go through the forecasts for their own expenditure areas and appropriations.
Forecast, expenditure area and appropriation
- Forecast: Prediction, estimate, assessment of future developments
- Expenditure area: Budget expenditure is broken down into 27 expenditure areas in accordance with the Riksdag Act. A parliamentary committee can prepare one or more expenditure areas for decision. No areas are shared between committees, however.
- Appropriation: An amount of money in the central government budget that the Riksdag determines may be used for a specific purpose.
