In the context of the application of the Fiscal Responsibility Act (FRA) (Official Gazette 111/18) in the Republic of Croatia, the establishment of a permanent, independent and autonomous fiscal body was defined and implemented: the Fiscal Policy Commission tasked with the performance of works from its scope of activities and competences laid down in the above-mentioned Act.
Considering the economic challenges and fiscal oscillations in terms of increasing deficit and public debt and frequent world crises, it has become increasingly important to apply and control fiscal rules and thus also to establish fiscal bodies (boards) in order to enhance fiscal discipline and the state of public finances. In line with the development and improvement of the existing fiscal framework, which aims to enhance fiscal policy coordination and monitor fiscal coordination and the compliance with the (supra)national numerical fiscal rules from the E(M)U normative framework, EU Member States were obligated to establish independent institutions such as: fiscal boards, councils, counsels or commissions.
Croatia’s Fiscal Policy Commission is one of the independent institutions whose main task is to monitor public finances so as to ensure their long-term sustainability and improvement, where it acts as the supervisor of the implementation of the state’s fiscal policy in its entirety.
The Commission encourages publicity and promotes the culture of fiscal responsibility in implementing fiscal policy in the Republic of Croatia through independent analyses of fiscal policy and by inviting expert discussions on fiscal policy.