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IDSCS and CEA identify a Need and Benefits from Implementation of Performance Budgeting in Macedonia

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The budget Process in Macedonia has largely been a closed process in the last 23 years. The two basic principles that are necessary so it can elevate to a higher level are endangered– firstly, transparency, openness and inclusion of the public in the budget process are not applied. The public is neither a monitor nor a corrector of the budget process. Secondly, there are no formal indicators for the efficiency and the results from the numerous budget projects and spending. These flaws and challenges of the budget process in Macedonia are some of the main reasons because of which the Center for Economic Analyses (CEA) and the Institute for Democracy “Societas Civilis”-Skopje (IDSCS) are indicating to the need and imperative for initiation of a performance based budgeting in Macedonia.

IDSCS and CEA publish the public policy study “Performance Based Budgeting – for Better Budget Process and Enhancing Transparency and Accountability”. The key aim of this policy study is determining the needs and benefits from introducing performance budgeting in Macedonia, as one of the preconditions for enhancing the budget transparency and accountability, as well as, as a key condition for efficient management of the budget resources. We are aware that this is a long-term process which even in the most developed countries is not fully finalized and is facing numerous obstacles. However, we sincerely hope that our project and research will be “initial capsule” which will activate and encourage this significant category in the budget process in our country.

This policy study points out to the steps which is necessary to be undertaken so performance budgeting can be implemented in Macedonia. These steps are the following:
–    To adapt the concept of performance budgeting to the current political, fiscal and economic conditions in the country. The extensiveness and the complexity of the whole process, as well as how it would integrate in the political understanding of the budget process, should be taken into account.
–    The aims and the expected results from the proposed reforms should be clearly defined and transparently shared with all participants in the process – policy makers, ministries, agencies, sectors, etc.
–    The current budget system should be analyzed and elaborated on how it can connect and adapt to performance budgeting. The existing connections between the aims, plans and activities of the budget users can be used as basis for developing a system of indicators and other reforms. This will prepare the ground for implementation of performance based budgeting. Other steps and proposals can be read in the study which is available in Macedonian mk and Albanian al.

More information in regards to the conclusions and recommendations of the study of the budget policy can be answered by Borce Trenovski on email: borcetrenovski@gmail.com or phone 070 536 816.

The study was prepared in the frames of the project “Enhancing Transparency and Accountability through Performance Budgeting” which is implemented by CEA and IDSCS and which is funded by the European Union. The aim of the project is to promote budget transparency for accountable spending of public finances. More information about this project can be found on the following link.

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the Institute for Democracy “Societas Civilis” – Skopje  and the Center for Economic Analysis and can in no way be taken to reflect the views of the European Union.

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