PROGRAMMATIC BUDGET

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PROGRAMMATIC BUDGET
Budget directed towards results
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WHAT IS PROGRAMMATIC BUDGET?

• Programmatic budget represents

A STEP within a wider process of transferring to
a more comprehensive and efficient of managing
public finances OUTCOME MONITORING SYSTEM
Key characteristic of programmatic budget is in
shifting the budget emphasis from engaged
resource to short-term and long-term outcomes and
achieved objectives of economic policy
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WHY PROGRAMMATIC BUDGET?
IN ORDER TO IMPROVE THE EFFICIENCY OF THE STATE
AS AN IMPORTANT FACTOR OF NATIONAL COMPETITIVENESS
Serbia is a country which starts using public
resources efficiently
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PROGRAMMATIC BUDGET MODEL

• It is harmonized with
• Serbias juridical system
• Organization and structure of beneficiaries of
  budget resources
• Concept of our budgetary system
• Current budget classification system
• Current methodology of preparing financial plans
  of budget beneficiaries
• Methodology of preparing and developing the
  budget of the Republic of Serbia

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PROGRAMMATIC BUDGET MODEL

• Key characteristics of the model

• Joint area for all budget beneficiaries
• Centralized allocation of staff-related
  expenditures salaries
• Unique Main Program for ongoing expenditures and
  costs which are not linked to the time period for
  all budget beneficiaries

2. Other expenditures and costs are grouped
through programmes
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BUDGET CLASSIFICATION
PROGRAMMATIC BUDGET
CURRENT BUDGET

• Organizational
• Functional
• Economic
• Sources of financing

• Programmatic

• Organizational
• Functional
• Economic
• Sources of financing

• Contributes to a higher-quality planning of
  expenditures according to specific objectives and
  tasks contained in programmes, in line with
  objectives and priorities set in the Budget
  Memorandum

• Contributes to a higher-quality budget execution
  and more efficient cash-management, because
  projects define the dynamics of resource spending

• Enables a higher-quality control of effects and
  outcomes during and towards the end of the
  budgetary year

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MINISTRY OF FINANCE
- Financial Plan -
Strategic area
Strategic areas are areas
within which the Republic and local authorities
function and/or provide services
Main Programme is a general programme which is a
part of the Strategic areas and is prepared and
implemented through one or more Programmes, which
are in jurisdiction of one or more direct budget
beneficiaries. Main Programme has general
objectives and indicators of success and
effectiveness, which contribute to the
achievement of strategic objectives.
Project is a set of activities interlinked and
organized in such a way as to lead to the
achievement of objectives and outcomes of
Projects and/or Programmes. Project has a
timeframe (a year or longer), objective or
outcome it is attaining and predefined required
resources (material and human).
Activity comprises tasks which are performed
and/or services provided within a Programme
and/or Project, with planned expenditures and
costs in detail, and are completed with achieving
one or more results contributing to achieving
objectives and results of the Programme and/or
Project comprising them.
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PROGRAMMATIC STRUCTURE MODEL
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APPROPRIATION
Appropriation structure according to the current
manner of budget preparation
Resources intended for programmes within
assistance to religious communities, given in one
amount.
Purpose of allocated resources is not visible.
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APPROPRIATION
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PREPARATION OF FINANCIAL PLAN ACCORDING TO
PROGRAMMES
Programmes of budget beneficiaries contain -
Programme description - Legal and other basis -
Long-term objectives and their links with
objectives in strategic documents and main
programmes - Annual (short-term) objectives -
Necessary resources for implementing programmes
according to activities - Methods for analyzing
effectiveness of programmes and implementation of
defined objectives.
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STRATEGIC PLANNING
NATIONAL CROSS-SECTOR STRATEGIES
Programme
Programme
P L A NN I NG LEVELS
Programme
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Budget Preparation Information System
Beneficiaries are linked to the Ministry of
Finance via local network and Internet
Beneficiaries send financial plans from their
computers, and amend and add to the plans during
the entire period
communication server MF
The Ministry of Finance provides suggestions to
received financial plans of beneficiaries during
the preparation period
database server MF
Budget preparation program