Mnistry of finances presents unique budget development methodology
The Ministry of Finances presented the final version of the Unique Budget Development Methodology http://www.mf.gov.md/common/news/1._set_ro.pdf. The document will come into force starting with January 1, 2011 and presumes complex and consecutive development of forecasts on the following years as well as of annual budgets during the whole year.
Citing the project, the budget cycle will begin a year before approving the law on budget, starting from submitting by the Ministry of Economy on December 20 the macroeconomic forecast and ending with approving in the Parliament the law on national budget for the following year until December 5.
The methodology contains the term of budget framework on an intermediate term, which represents the data in the perspective of the following budget year and the following two years.
"The main objectives of the Methodology aims to strengthen the macroeconomic equilibrium and the financial discipline through planning a realistic budget, increasing spending effectiveness, guaranteeing predictability of resources and increasing the level of transparency in the decision-making process", says the text.
The inter-ministerial committee appointed by the government will be in charge of developing and implementing the project. The committee either the prime minister will have the right to approve the Unique Budget Development Methodology that will be developed based on the State Chancellery recommendations.
Infotag's dossier: The Ministry of Finances is planning to complete until the middle of 2011 the development of the bill on public finances, which will replace the law on budget system and budgeting process, developed in 1996. The document is being developed with the support of World Bank. Legislation on public finances of European States, the Code of Fiscal Transparency of the IMF and the international experts and development partners' suggestions were taken as a sample in developing the project.
Infotag
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