Cooperation between municipalities and central government

Under the Local Government Act, the Ministry of Finance monitors the operations and finances of Finnish municipalities in general and sees to it that their status as self-governing entities is taken into account when laws concerning municipalities are prepared. Legislation concerning municipalities, matters of municipal administration and finances that are important and far-reaching in principle and the coordination of local and central government finances are dealt with in negotiations between the municipalities and central government, as prescribed by decree.

Advisory Board on Municipal Economy and Administration

The Advisory Board on Municipal Economy and Administration works under the Ministry of Finance and deals with matters involving local government legislation and municipal administration and finances that are far-reaching and of importance in principal. The Board brings together representatives of the central government and the Association of Finnish Local and Regional Authorities, and the Ministry's Department for Municipal Affairs acts as its secretariat.

The Board examines Government proposals with impact on local government administration and finances, and the sections of the Budget covering local government finances, assesses prospects for local government finances, and monitors the functioning of the system of central government transfers to local government and makes proposals for improving it. The Board has economic and assessment sections for preparing matters.

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