Official title of the project

Support to the Ministry of Finance- Treasury Administration capacity building

Sectors
None

Project information

Region / City
Cities
Belgrade
Total budget of programme / project

EUR 1,879,000

Implementation period
2011. Apr - 2013. Nov
Expected results
  1. Improved Financial Management;
  2. Improved Public Reporting and Accounting system complying with EU standards;
  3. Improved Public Debt and Liquidity Management.
Beneficiary

Ministry of Finance and Economy of the Republic of Serbia, Treasury Administration

Target Groups

Public Debt Administration, CHU, Direct and indirect budget users, Supreme Audit Institution

Summary of the project

A key development in Public Finance Reform was the adoption of the 2002 Law on Budget System, which regulates the planning, preparation, adoption, execution and reporting of the budget for the Republic, provinces and local self-government. The law defines clear roles and responsibilities, and ensures high levels of transparency by presenting gross budgets and removing extra-budgetary funds from the system. The law also lays down the   underlying objectives of the budget as macroeconomic stability, sustainable and stable economic development, and the minimisation of financial risk to the Republic. The national budgets have to be prepared according to the principles of efficiency and cost-effectiveness, completeness, accuracy and unique budget classification. Finally the Law on Budget System introduced Medium-Term Expenditure Planning, with a three-year framework for expenditure and revenues, based on a Budget Memorandum which sets the context for public finance policy, and an annual Budget Law, which projects forward for the subsequent two years.

As well as the Law on Budget system, since 2002 the Treasury system has been modernised to improve budget execution and management, ensuring timely and accurate reporting of revenues and spending, and high standards of transparency of budget plans, receipts, commitments and expenditure.  The changes include:

  • Creating the Treasury in 2002 as a new Administration of the Ministry, responsible for cash management, budget accounting and reporting and budget control;
  • Creating the Public Payment Agency (PPA) in 2003, to support the Treasury, with the transfer of the payment transaction system to commercial banks;
  • Establishing a Single Treasury Account (STA) in 2003, and gradually extending the inclusion of budget beneficiaries in the STA, until full coverage was reached in 2004;
  • Publishing a monthly ‘Bulletin on Public Finance’ since Septembe

Programme/Project objectives

  1. The overall objective of the project is to improve the efficiency, effectiveness and transparency in the expenditure of public funds. 
  2.  The purpose of the project is to build sustainable capacities  in the Treasury Administration and Debt Management Administration for efficient budget execution, financial planning, budget accounting, reporting and public debt and liquidity management.