1. JOINT PROJECT Towards the more effective implementation of reforms: improving planning, budgeting, monitoring & reporting Creating preconditions for improving programming of EU assistance Government of Serbia Nemanjina 11/ room 45 11000 Beograd, Serbia Serbia & Montenegro November 2005 Phone: +381 11 3617 588 Ms. Dejana Razic–Ilic, Project manager dejana.razic@sr.gov.yu

2. The Purpose of the Joint Project The establishment of: “efficient and integrated planning, budgeting, monitoring and reporting systems across Government of Serbia” Three phases:  Pilot – 2005  Future testing – 2006  Roll out – 2007

3. The objectives of the Joint Project ♦Building capacity and systems in the line ministries to develop yearly operational plans of action (YOPA) – implementation of MTDF ♦Improving resource allocation – budget and programming of international assistance – to meet national policy priorities ♦Creating preconditions for better monitoring and reporting on ministerial and governmental level ♦Providing preconditions for more accountability in policy implementation

4. PARTICIPATING CENTRAL INSTITUTIONS  Serbian European Integration Office (SEIO)  PRS Implementation Focal Point (PRS)  Ministry of Finance (MFIN)  Ministry of International Economic Relation (MIER)  General Secretariat (GS)  Ministry of Public Administration and Local Self Government (MPALSG)

5. PARTICIPATING LINE MINISTRIES  Ministry of Labour, Employment and Social Policy (MoLESP)  Ministry of Economy (MoEco)  Ministry of Trade, Tourism and Services (MTTS)  Ministry of Health (MoH)

6. Integrated planning: common platform The CIRCULAR process… Joint Project – towards more effective implementation of reforms EIp (EP, EIS, Progress Report…) PRS implementation (Progress Report) Relevant sector strategies GoS yearly work plan (Co-ordination/ prioritisation) GoS yearly work plan (Co-ordination/ prioritisation) Resource Allocation: - internal - external Resource Allocation: - internal - external Implementation Reporting: Monitoring/ Evaluation Reporting: Monitoring/ Evaluation

7. Integrated System Policy YOPA Budget Int’l Assistance Implementation Reporting/ monitoring /evaluation GoS Plan of Action

8. JOINT APPROACH (1) LINE MINISTRIES Improving capacities by developing Yearly Operational Plans of Actions (YOPA) which will:  Serve as a managerial reform tool—reduce burden and improve efficiency: –Include PRSp, EIp and other cross-cutting policy priorities and respective sector strategies –Improve resource allocation and create preconditions to shift towards programmatic budgets –Serve as a basis for developing better information and monitoring systems and better access to information –Provide better coordination within and between departments –Enable defining better internal organization  Reflect legal obligations and current reform results  Serve as a basis for improved service delivery

9. JOINT APPROACH (2) “CENTRAL” INSTITUTION  Coherent policy input from SEIO and PRS leading to improved cooperation with LMs and strengthening capacity to monitor and coordinate policy implementation  MoFin by introducing: a) programmatic budgeting to focus on outputs and outcomes in resource allocation, b) mid-term macro and fiscal framework, and c) improved reporting on budget execution  MIER by improving systems for programming of international assistance, including EU financial assistance  GS by improving capacities to undertake future central level planning, coordination and reporting  MoPALSG by integrating reform initiatives and PAR in general and providing legal framework for their implementation  All of them by improving cross-government operational coordination

10. Results of the pilot phase  A new objectives-based planning methodology designed  4 LMs developed their YOPAs for 2006 testing the new methodology  Lessons learned and input available for: –Development of program budget guidelines –Development of EU assistance programming guidelines and its link to other int’l assistance –Development of integrated monitoring and information system

11. LM’s overview – Positive aspects  Enables overall insight into all LM’s activities (including int’l projects)  Provides better insight in stakeholders needs  Prevents overlapping of projects and activities  Provides a practical tool for intersectoral cooperation and communication within LM  Enables better resource allocation

12. Focus of the next phase of the JP  Further capacity building in LM and central government institutions: –More LMs involved –Process aligned with budget cycle  Support to: –The phased introduction of program budgeting –The introduction of the new system for programming of EU assistance –The establishment of better monitoring and information system –The process of the central Government office reform  Ensure that all relevant legislation reflects the concept of the new planning, budgeting, monitoring and reporting systems  Phased roll-out of the new planning system (MPALSG)

13. Importance  Ownership  Participatory bottom-up approach (tailor- made for Serbian Public administration)  Demand driven process – led by the network  JP processes are aimed at improving the way the GoS works

14. Abbreviations SEIO: Serbian European Integration Office PRS: Poverty Reduction Strategy PRS IFP: PRS Implementation Focal Point MFIN: Ministry of Finance MIER: Ministry of Int’l Economic Relations GS: General Secretariat MPALSG: Ministry of Public Administration and Local Self-Government MTDF: Mid-term Development Framework LMs: Line Ministries YOPA: Yearly Operational Plans of Action

15. JOINT PROJECT Towards the more effective implementation of reforms: improving planning, budgeting, monitoring & reporting Government of Serbia Nemanjina 11/ room 45 11000 Beograd, Serbia Serbia & Montenegro November 2005 Phone: +381 11 3617 588 Ms. Dejana Razic–Ilic, Project manager dejana.razic@sr.gov.yu