1. Making budget projections and setting ceilings for budget
beneficiaries
1. Making budget projections and setting ceilings for budget
beneficiaries
2. Collection of budget beneficiaries’ financial plans
2. Collection of budget beneficiaries’ financial plans
3. Preparation of the Draft Budget Law
3. Preparation of the Draft Budget Law
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Budget Preparation and Monitoring Information System (BPMIS) enables:
It represents one of the modules of the Republic of Serbia FMIS
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
128 direct budget beneficiaries (DBBs)
Ministry of FinanceTreasury
BPMIS facilitates direct communication between all budget beneficiaries and the Budget Preparation Department
during the entire budgeting processIntegrated Financial Management Information System (FMIS)
BPMIS Database Server Cluster
BPMIS Web & Application Server
SW1 , SW2, ...
Cisco 6513
FMIS Internet Gateway Server
Online clients (Web browser) Online clients
(Web browser)
Offline clients (Windows forms)WAN
MoF, DBBs and IBBs (indirect budget beneficiaries) DBBs and IBBs
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
System Hardware Architecture
All budget classifications and data used for the budget preparation are loaded from: • Budget Execution Module • Public Debt ModuleAfter the budget is prepared, there is a special procedure for loading the adopted budget data into the execution module.
FMIS Database Server
Budget Execution ModulePublic Debt Module
BPMISDatabase Server
Ministry of FinanceBudget Preparation Dpt.Macroeconomic and Fiscal Analyses Dpt.
Real-time data import
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Full Harmonization with all FMIS Modules
• Code lists• Historical data• Public Debt
• Revised Code lists• Adopted budget
Loading budget into Budget Execution
Assessment of macroeconomic
indicators
Previous budgets
Implementation of Government
policies
Estimated revenues and expenditures
• Fiscal target (surplus/deficit)• Government priorities
Adjustments with budget
beneficiaries
• Making budget projections• Setting ceilings for budget beneficiaries
Phase 1
Making budget
projections
relying on the
Government
policies and
macroeconomic
indicators
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Making Budget Projections
Macroeconomic indicators
Baseline (previous budgets)
Indicators Output(projection of the new budget)
Evaluation of results
Making Budget Projections
Republic of Serbia
Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Producing Complex Indicators
When developing rules for the preparation of budget projections it is possible to define highly sоphisticated indicators, by combining basic macroeconomic indicators (inflation, GDP, output growth...) and complex mathematical formulas.
It is possible to define a special rule to be applied for each budget component.
It is therefore possible to define separate rules for payroll, separate ones for investments, subsidies, etc.
Republic of Serbia
Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Pessimistic scenario
Moderate scenario
Optimistic scenario
Baseline (previous budgets)
Version 1
Version 2
Version 3
Making Several Projections of the Same Budget
By using the same calculation basis, it is possible to produce several scenarios by selecting appropriate indicators, thus creating various budget projections.
When making projections it is also possible to opt for multi-year budgets, projecting a separate budget for each year.
Republic of Serbia
Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Making Multi-Year Budget Projection
Output (projection of the new budget)
Ceilings for DBBs
After the appropriate budget projection is selected, ceilings for budget beneficiaries arе set аccording to the rules determined during the preparation of the selected projection.
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Completion of the Budget Projection
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Ceilings by beneficiaries are
published
Instruction for the preparation of fin.
plans
Beneficiaries are able to access the
system
Beneficiaries enter their financial plans
Adjustments with budget beneficiaries
MoF analyzes received financial plans of budget beneficiaries
Beneficiaries modify their financial plans
• preparation of the Draft Budget• submission of the Draft Budget to the Government and the Budget Bill to the Parliament
By using online WEB application, DBBs enter their financial plans in line with the budget calendar.After that the beneficiaries cannot modify the data without the consent of the Ministry of Finance.
When the beneficiaries finish entering their financial plans, Budget Preparation Dpt evaluates their conformity with the set projection and makes corrections if necessary, or enables the beneficiary to correct the plan by him self.
After the corrections have been made, Draft Budget is prepared, submitted to the Government and following final adjustments, Bill on the Budget is presented to the National Assembly.
Budgeting
Republic of Serbia Ministry of FInance
TREASURYTREASURY
BPMISBPMIS
WAN
Preparation of the Beneficiaries’ Financial Plans
PBMIS Web & Appplication Server
128 DBBs
Phase 2
Budget beneficiaries develop their financial plans via the WEB application which only requires an Internet browser and a realiable Internet connection, which reduces the beneficiaries’ system implementation costs to the minimum.
Treasury Help-Desk support is provided to beneficiaries during the
entire budgeting process
Republic of Serbia
Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Preparation and Collection of Beneficiaries’ Financial Plans
Sending data to DBBs
Collection of data from DBBs
MINISTRY OF FINANCEMINISTRY OF FINANCE
Entering data
Sending data to DBB
IBBIBB
Setting ceilings for IBBs
Sending data to all IBBs
Collecting data from all IBBs
Submission of data to MoF
Entering data
DBBDBB
Data creation for all IBBs
Republic of Serbia Ministry of Finance
TREASURY TREASURY
BPMISBPMIS
Preparation of the Beneficiaries’ Financial Plans
Previous budgets
When entering financial plans each beneficiary has access to the current budget data for that specific beneficiary (budget and outturn), as well as the data from previous budgets.
By analyzing the historical data beneficiaries can more easily plan the expenditures for the following year.
Republic of Serbia Ministry of Finance
TREASURY TREASURY
BPMISBPMIS
Preparation of the Supplementary Budget
In the event that an “urgent” supplementary budget is needed,Budget Preparation Dpt. is capable of preparing the revised budget without participation of the DBBs, i.e. it is not neccessary that they enter corrected financial plans.
On the basis of the existing budget and the scenario which is to be used for attaining the fiscal target, a new budget draft can be very quickly developed.
• Fiscal target (surplus/deficit)• Government priorities
Development of the scenario aimed at achieving the fiscal
target
• Preparation of the draft budget, projections of revenues and expenditures for all budget beneficiaries
Current budget
Republic of Serbia Ministry of Finance
TREASURYTREASURY
BPMISBPMIS
Monitoring the Implementation of Sector Policies and Government Priorities
• Budget execution by beneficiaries, programs and projects
• Monitoring of program and project outputs (indicators)
Budget Execution and Public Debt Modules
Budget Preparation ModuleBudget beneficiaries
Budget management
Financial reporting
Non-financial reporting
Expenditure management on the basis of results achieved
Reporting to the Government on the achievement of set goals and priorities