1. GROUP 1

2. Group 1 – COUNTRIES
Bosnia and Herzegovina
Montenegro
Croatia
Macedonia
Serbia

3. Question 1: What would be an ideally designed methodological and organizational system for spending reviews?
Question 2: How can we ensure that spending reviews are well integrated and used in the budget process?

4. SCOPE: It is advisable to combine efficiency and strategic analyses
SCOPE: It is advisable to combine efficiency and strategic analyses. Strategic analyses are important as expenditures in our countries are largely given and will have to be included in such type of analyses in the long-run.
FREQUENCY: Comprehensive analyses should not be carried out too frequently, not more than once every 5 years, and specific analyses should be performed on an annual basis, but in different areas.
SPENDING AREAS: When selecting the type of expenditures for analysis, budget participation should be taken into account. Both MINFIN and LMs should participate in proposal preparation, but the decision should remain at the level of the government. Mechanisms of public participation in proposal preparation should definitely be considered, but in more advanced stages.

5. TEAM: A combination of MINFIN and LMs is imperative in the top-down and bottom-up combination approach. LMs should be actively involved, particularly concerning data submission. MINFIN should be able to provide its own alternative proposals. The Government should take the final decision on the recommendations to be implemented. External experts are recommended, but in a limited number, and provided they have public sector capacity and knowledge.
PROCESS: The analysis should preferably take at least 9 months to one year to allow officials to implement it while doing their regular job and to facilitate detailed analysis. The working frequency and process depend on the scope, duration and cooperation between MINFIN and LM; building trust is crucial.

6. METHODOLOGY: General standard principles for all analyses are required, but detailed individual methodology should be developed depending on the area and data. It is important to use performance indicators.
INTEGRATION IN THE BUDGETARY CYCLE: Imperative. The pre-requirement is to time analysis completion in line with the budgetary cycle. It is advisable to adopt long-term analysis implementation plan. Political will at the governmental level and active participation of LMs and budgetary analysts are indispensable pre-conditions. It is important to adopt legislation at least at the level of principles. It is also required to take on processes slowly, to avoid the burden of having several reforms running at the same time.

7. Thank you