Download Budget System in the Former Yugoslav Republic of - sigma

Union, principally financed by the EU
A joint initiative of the OECD and the European
Budget System in the Former
Yugoslav Republic of Macedonia
Toni Dimovski
Head of Budgets & Funds Department
Seminar on Budget and EU Funds
Skopje, 14-15 May 2007
© OECD
BUDGET SYSTEM IN
REPUBLIC OF MACEDONIA
Until 1993, Law on Common and Social Needs
 Starting 1993, Budget Law
 In a period of 12 years, many modifications
and amendments
 In 2005 new Budget Law – oriented towards
EU Regulations and Directives

BUDGET REFORMS
• New Organic Budget Law adopted (July
2005)
• Budget presentation on a new definition
according to GFS 1986
• Functional approach
• Ministries need to prepare strategic plans
PROGRAMME BUDGETING



Government programmes based on
Government strategic priorities
Budget programmes based on legislative
activities of the budget users are shown as
separate programmes and sub-programmes
Capital sub-programmes: projects identified as
separate sub-programmes
2007 Central Budget Expenditures by
COFOG Functional Classification
GDP
General pubic services
Defence
Public order and peace
Economic affairs
Environment protection
Dwellings and community development
Health
Recreation, culture and religion
Education
Social protection
(In mil.Euros)
5.310
126
119
164
392
6
27
291
35
253
604
%
2,38
2,25
3,08
7,37
0,11
0,51
5,48
0,65
4,76
11,37
EU Funds




The Ministry of Finance shall be authorized to manage the resources
received from the Budget of the European Union, in accordance
with the European Union provisions and regulations for financing
and concluding agreements.
Structural Funds and Cohesion Funds of the European Union, as
well as other assistance and programs of the European Union shall
be an integral part of the budgets and shall be presented separately
in revenue plans and plans of appropriations by programs and subprograms.
Appropriations of the basic budget earmarked for co-funding shall
be shown in the Budget in the respective program, i.e. subprogram.
Funds referred to EU funds shall be a long-term financial liability of
the Republic of Macedonia, i.e. of the municipality and shall be used
within the project period.
GENERAL GOVERNMENT BUDGET
STRUCTURE
General Govt. Budget
Budget of the RM
(Central Government Budget)
Central Budget
Budget of LGUs
Budgets of Extra-Budgetary Funds
PDF
Core Budget
Budget of self-financing activities, donations and loans
HIF
Employment Agency
Road Fund
CONSOLIDATED GENERAL GOVERNMENT
BUDGET
(mil. EUR)
2007
Consolidated GG Budget –Revenues
% of GDP
Consolidated GG Budget –Expenditures
% of GDP
Consolidated GG Budget –Deficit
% of GDP
Central Budget-Revenues
% of GDP
Central Budget-Expenditures
% of GDP
Central Budget-Deficit
% of GDP
GDP
2008
2009
1.892
2.020
2.145
36
35
34
1.947
2.091
2.196
37
36
35
-55
-72
-51
-1
-1
-1
1.215
1.305
1.387
23
23
22
1.261
1.358
1.443
24
24
23
-46
-53
-56
-0.8
-0.9
-0.9
5.310
5.769
6.298
CONSOLIDATED GENERAL GOVERNMENT
BUDGET
(mil. EUR)
2007
2008
2009
503
391
416
10
7
7
513
409
412
10
7
7
-10
-18
4
0
0
0
173
324
341
3
6
5
173
324
341
% of GDP
3
6
5
LGU Budget-Deficit
0
0
0
% of GDP
0
0
0
5.310
5.769
Budget Funds –Revenues
% of GDP
Budget Funds –Expenditures
% of GDP
Budget Funds –Deficit
% of GDP
LGU Budget-Revenues
% of GDP
LGU Budget-Expenditures
GDP
6.298
BUDGET PROCESS
Mid-term
Adopting
Macroeconomic
the Budget
policy
Budget proposal adopted
by the Government and
submitted to the Parliament
Defining
government
priorities
Fiscal policy
Budget Proposal
Budget circular
submitted to the
Government Budget
requests
PLANNED BUDGET
DEVELOPMENTS



Implementation of new budget
software
Application of GFS 2001 in budget
reporting for the purpose of
compatibility with ESA 95
Medium-term expenditure ceilings by
functional approach

Developing performance indicators

Capital budgeting