budget preparation and monitoring information system

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


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


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


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


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


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.


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BPMISBPMIS

Completion of the Budget Projection


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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


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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.


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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


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

budget preparation and monitoring information system

Economy & Finance