The key tasks of fiscal policy are to ensure a permanent improvement of public finances and the quality thereof. The main challenges on expenditure side include dealing with the consequences of population ageing and the accumulated public debt, as well as managing the risks related to the banking system, state ownership and guarantees issued. In terms of the impact of public finances on the economy, a more selective approach to expenditure reduction is needed, as well as tax burden restructuring with a reduction of negative impacts on competitiveness. With the adoption of new rules for better coordination of fiscal policies in the EU, it is necessary to strengthen the medium-term budgetary framework and independent institutions for fiscal surveillance.