Three leading economic experts have been appointed by Guernsey's senior politicians to keep an eye on States' spending.
The intention is for the members of the panel to act as independent arbiters in overseeing public finances.
In April 2009, the States approved a series of proposals designed to safeguard the States' fiscal policy.
The Policy Council said key to this was the adoption of an external panel of experts to provide independent opinion.
Joly Dixon, Marian Bell and Christopher Allsopp were appointed to the island's first Fiscal Policy Panel.
The three also sit on the equivalent body in Jersey, a point Guernsey's Chief Minister said showed "a positive signal in support of pan-island collaboration".
Mr Dixon, the chair of the panel, said: "We are delighted to be working with the States of Guernsey. Our work in Jersey has shown the benefits of a Fiscal Policy Panel.
"We welcome the decision of the Policy Council to establish a fiscal framework and look forward to working with others to make it a success."