Ministry of Finance and Economy of the Republic of Serbia, Treasury Administration
Public Debt Administration, CHU, Direct and indirect budget users, Supreme Audit Institution
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: