Fiscal Responsibility Oversight Committee releases 2020 Annual Report

Under Section 10 of the Act (the Escape Clause) provision is made for the suspension of the fiscal rules, targets and corrective measures established under Sections 7 and 8 if there are certain catastrophic events, including a “public health epidemic” such as the global pandemic caused by the Covid-19 virus.

Under this framework, the Minister of Finance had determined that “implementation of the fiscal rules, targets or corrective measures would be unduly harmful to the public finances and macroeconomic or financial stability”. As such, and in accordance with the provisions, the Minister suspended the fiscal rules, targets and corrective measures. The 2020 FROC Report will therefore be different from previous Reports given the suspension of fiscal compliance targets, in accordance with the law.