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Public Finances

System of public finances management defines procedures of redirection of public finances and their management in a way which ensures fiscal discipline, follow-up of strategic priorities and provision of efficient usage of public finances. Public finances are also the area in which expectations of the EU are the greatest.

When it comes to the management of the funds which originate from the EU or will be directed to the EU budget, Acquis defines indirect demands on the manner of forming of national budgets. This are is in a tight relation with demands of the EU, in the sense of forming and adopting a budget, and also principles, standards and methods of public internal financial control (PIFC).

Basic objectives for the area of public finances, identified by the Strategy of the Public Administration Reform, which contribute to general goal of building public administration which will be open, efficient, effective and accountable, are:

  • consolidate achieved results and continue further investments in the public finances sector
  • establish efficient system of financial management
  • establish and strengthen control environment in which administration works

Action Plan 1 of the Strategy of the Public Administration Reform identifies 4 primary aspects in the area of public finances, within which reform activities will be implemented. Those are:

  • dimension of creation of policy in the system of public finances;
  • increase in effectiveness and efficiency in budget managing and budget drafting;
  • improvement of accounting framework and work of the treasury system;
  • introduction of internal financial control (PIFC) in accordance wit the requests of the EU.

This area, as well as concrete measures, deadlines and institutions in charge are described in detail in the Strategy of the Public Administration Reform and Action plan 1.

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