The Budget Directorate plays an important role in the implementation of the functions of the Ministry of Finance related to supporting the minister of finance in conducting government policy in the area of public finance and in forming the state's budgetary policy in the short and medium term.
The Directorate's objectives are related to the coordination of the budgetary process at the stage of budget planning and drafting, the preparation of the key budget documents for the respective year and the refinement of the quality of public finance and the budgetary system.
The functions of the Budget Directorate cover four main directions aimed at:
- carrying out a budgetary policy for achieving a sustainable medium-term budget forecast and optimizing the budgetary planning;
- affirming the approach of programme and result-oriented budgeting and improvement of the budgetary process;
- supporting the reforms in public sector financing and monitoring the effects of the policies conducted in view of public expenditure optimization and
- strengthening the capacity of civil servants so as to make the management of public finance effective.
The initiation of the budgetary process is part of the Directorate's tasks performed by means of coordination of the budget procedure for the respective year, the activities related to the drafting of the medium-term budgetary forecasts, the annual state budget laws, the decrees for their implementation, as well as the related budget documents. The Directorate coordinates the activities related to drafting the consolidated fiscal programme, and analyses its indicators and the potential budget risks.
The Budget Directorate plays a key role in the elaboration of the budgetary methodology in the area of programme budgeting by drafting instructions, guidelines and standards for planning, compiling, execution and reporting of the budgets of first-level spending units appointed to apply programme budgets. The Directorate assists the spending units in the identification and refining of the budget structure by policy areas and budget programmes as well as in the preparation of their budgetary documents.
In view of the effective allocation of resources and the achievement of maximum benefits from their spending as key instruments for enhancing the quality of public finance, the Budget Directorate reviews and analyses key public sectors and policies and makes proposals for improvement of public resources management. The Directorate works in the area of ex-ante and ex-post assessment of policies and programmes in the social and real sector by focusing on the financial aspects in the process of provision of public services.
In order to strengthen the capacity of the administration engaged in public sector management, the School of Public Finance, which is within the structure of the Budget Directorate, develops and holds training by organizing and offering courses and seminars on issues and topics in the area of public finance. Training is done on the basis of training needs analysis and serves as an instrument for conducting reforms and refining the financial management practices in line with the EU requirements in the area of financial and budgetary issues.
The Budget Directorate sets the direction and coordinates the refinement of budgetary legislation with the participation of all stakeholders. The Directorate also participates in the discussion of budgetary policies, budgetary reforms and practices with EU institutions, as well as with other international financial institutions.