Finland has a long tradition of efficient financial management, starting from the 16th century. In 1809, the country was able to establish her own financial administration. It was a crucial step for Finland’s state formation and marked the beginning of nation building. It was the first time in Finland’s history that all taxes collected from the tax-paying citizens were used to benefit the people themselves. The 19th century was a period of institution building. The Department of Finance was one unit of the Government. In the 20th century, the Ministry of Finance consolidated its position as one of the leading agencies of government. European integration and globalisation have emphasised the importance of well-functioning financial institutions and prudent financial policies.