SlideShare a Scribd company logo
1 of 18
Download to read offline
МИНИСТЕРСТВО НА
ФИНАНСИТЕ
KEY POINTS ON
PROGRESS IN THE
BULGARIAN BUDGETARY
PROCESS AFTER THE
LATEST REVIEW IN 2009
Emil Nurgaliev,
Budget Directorate
REPUBLIC OF BULGARIA
MINISTRY OF FINANCE
 Constitution of the Republic of Bulgaria
 Public Finance Act
 State Debt Act
 Tax laws
 Annual State Budget Law
 Annual Law on the Budget of the State Social Security
 Annual National Health Insurance Fund Budget Law
 Rules for the Organization and Procedures of the National Assembly
 Rules for the Organization of the Council of Ministers and its administration
 Other
The Public Finance Act (adopted 2013):
 Consolidates all aspects of the management and use of public resources on
both national and local level;
 Regulates the scope, structure and content of the medium-term budget
framework;
 Adopts all the requirements of Directive 85/2011.
LEGAL FRAMEWORK
 Full compliance with the requirements for fiscal rules and constraints,
including follow-up actions in case of deviations from the fiscal rules;
changes relating to the value of the medium-term budget objective of the
structural deficit;
 Extending the scope by including more information on the General
Government sector in the national budget documents, with the forecast of
the key indicators for the next three years being developed on the basis of
unchanged government policies and describing the envisaged new policies
with financial impact - the so-called "discretionary measures";
 Information on the overall impact of the activities of the enterprises falling
within the General Government sector, on the fiscal indicators of the
sector;
 Information on contingent liabilities with a potentially significant impact on
the General Government sector.
BUDGET FRAMEWORK
 Comparing the forecast of the Ministry of Finance for the main budget
indicators of the General Government sector with the latest available forecast
of the European Commission for the budget perspectives of Bulgaria;
 Creating conditions for sustainable and long-term balancing of the spending
responsibilities of the municipalities and enhancing their budgetary discipline; a
procedure for financial recovery of municipalities was introduced and a
number of measures were taken to achieve financial sustainability and stability
of local finances;
 Clear definition of the scope and the procedure for determining the budgetary
relations of the municipalities with the state budget throughout establishment of
basic relations between them. The size of the budgetary relations is adopted by
elements in the State Budget Law. There is a detailed definition of the terms
and conditions for implementing any changes in them.
BUDGET FRAMEWORK
Main principles to be observed in public finance management:
 comprehensiveness, accountability and responsibility, adequacy,
economy, efficiency and effectiveness, transparency, sustainability and
conformity with the law.
Expenditure classification in the budgets of first-level spending units
(FLSU):
 by indicators of economic and functional classifications;
 the expenditures in the budgets of FLSU, which implement a program-
based budget format, are classified by policy area/functional area and by
budget program within the competence and responsibility of the
respective FLSU;
 the expenditures of the National Assembly are classified by functional
area, while the expenditures of the judiciary are accepted by separate
bodies as well.
THE PUBLIC FINANCES MANAGEMENT SYSTEM
 The public finances management system is built on a broad basis and the
medium-term budgetary framework has become an operational tool for
medium-term forecasting and planning through the implementation by
central and local authorities of stringent fiscal rules and the provision of a
stable framework related to the development and reporting by a program-
based budget format;
0.40
0.45
0.50
0.55
0.60
0.65
0.70
0.75
0.80
2010 2011 2012 2013 2014 2015 2015 2016 2017
Medium-Term Budgetary Framework Index
BG EU 28
Fine-tuned methodology
 Since the entry into force
of the Public Finance Act
in 2014 Bulgarian MTBF
index outpaced EU-28
average
Source: EC, DG ECFIN
THE PUBLIC FINANCES MANAGEMENT SYSTEM
 In addition to the estimates by the national methodology (CFP - cash-
based indicators), the MTBF also includes the estimates for the GG
Sector and its subsectors according to the European System of
Accounts (ESA'2010), taking into account the impact on the budgetary
framework of state and municipal enterprises and quasi-budget
organizations;
 Provides a stable framework for the development and reporting by a
program-based budget format.
THE PUBLIC FINANCES MANAGEMENT SYSTEM
 Fiscal rules (on balance, debt and expenditures) have been set, aiming at
defining clear and transparent fiscal policy constraints in the long run
constituted in imposing numerical constraints on the main budgetary
aggregates.
Source: EC, DG ECFIN
 Numerical Fiscal Rules
and an Independent
Fiscal Council ensure for
prudent and predictable
fiscal policy. Bulgaria
ranks on top of Fiscal
Rule Index among EU
member.
-2
-1
0
1
2
3
4
2010 2011 2012 2013 2014 2015 2016 2017
Standardised fiscal rules index
BG EU
min in EU
max in EU
FISCAL RULES
Fiscal rules and actual outcomes
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
2010 2011 2012 2013 2014 2015 2016 2017 2018
% of GDP
Public debt Public expenditures Budget Balance
Public debt
Budget balance
Public expenditures
 PFA (into force since 2014) built on the previous State Budget Organic Law,
which already ensured a good framework for sound fiscal performance.
 There have been two major slippages in the fiscal position, due to shocks
exogenous to the public sector:
 following the global financial crisis (2009–10) and
 in 2014 when a major domestic commercial bank received liquidity support
from the state.
 In both cases, immediate correction measures were taken.
Source: Eurostat, MoF
FISCAL RULES
FISCAL COUNCIL
 Carries out its activity in the National Assembly and is administratively served
by its administration;
 Is not subordinate to the executive power, performs its functions
independently of the government and reports its work to the National
Assembly;
 Produces reasoned opinion and recommendations about the macroeconomic
framework (Spring and Autumn), the state budget act, on the draft acts of the
state social security budget and of the budget of the National Health
Insurance Fund, on the drafts of the medium-term budgetary forecast, and of
other strategic documents of the Council of Ministers, on the execution of the
state budget, of the budgets of the state social security and of the budget of
the National Health Insurance Fund;
 Monitors compliance with numerical fiscal rules;
 Upon established significant divergence of the macroeconomic forecasts
from the reported data for a period of at least four consecutive years,
recommend to the minister of finance to take measures for correcting the
divergence.
 Introduction of comprehensive, coherent and reliable practices for forecasting
and monitoring of the General Government sector;
 Bulgaria provides periodically information to the European commission on its
medium-term budgetary outlook in ESA'2010 terms;
 Introduction of forecasting and monitoring practices for the sub-sectors of the
General Government sector, including their debt which is done by including a
set of fiscal rules for the local government sub-sectors, including debt rule;
 Inclusion of the Social Security Sub-sector within the scope of the fiscal rules
to cover the full scope of the sub-sectors of the General Government sector.
The rules limit the ability of Social Security Funds to take on new debt and to
issue guarantees.
GENERAL GOVERNMENT SECTOR
 Synchronized and in line with the deadlines and procedures of the
Enhanced Economic Policy Coordination Mechanism - the European
Semester;
 Ensures the sustainability and consistency of processes and procedures for
the allocation and management of financial resources;
 Involvement of all responsible institutions - both budget entities and legal
entities that, although not part of the consolidated fiscal program, fall within
the scope of the General Government sector;
 Not a specific assignment of revenues;
 Strengthening of the interaction among the legislative, executive, judiciary
and municipalities in order to conduct a prudent fiscal policy.
BUDGET PROCEDURE
 Bulgaria has made continuous progress over the years, reported by the
International Budget Partnership (IBP) initiative, whose Open Budget
surveys for Bulgaria date back to 2006. According to the latest Open Budget
Index 2017, our country ranks 21st out of a total of 115 countries on budget
transparency, placing it among countries with a significant level of
transparency, and the assessment based on the Open Budget Index
reaches 66% out of 100%;
 The Ministry of Finance is taking steps to make the main budget documents
available to the public with a possibility of receiving a feedback;
 The Citizen Budget is distributed through different channels and to different
target groups – Budget 2019 in brief was distributed as a print copy of 100
000 among schools, tax services, customs offices and so on.
BUDGET TRANSPARENCY
 Steps to increase the opportunities for participation of the public in discussions
of implemented policies and the access to budget information and for
improving its quality and scope;
 Effective interaction with the Fiscal Council is a factor for enhancing the quality
of budget documents, for compliance with the fiscal rules and for potential
risks to the budget;
 According to the latest Open Budget Index 2017, our country ranks among
countries with a significant level of transparency.
21-st rank of 115 countries
Open Budget Index, 2017
BUDGET TRANSPARENCY
 Undertaking an expenditure review, in a joint project with the World Bank,
for identifying the necessary reforms in different sectors - the review has
covered 7 ministries, for which the MoF's internal analysis has revealed a
significant potential for improving their cost efficiency and effectiveness, as
well as 21 municipalities, including those undergoing a rescue procedure;
 An review of the Ministry of Foreign Affairs budget, initiated in 2019 to
improve the efficiency and effectiveness of MFA spending;
 Identification of key performance indicators for the policies in different
sectors in order to track the progress towards achieving the targets, incl.
national targets within the framework of the European strategic documents
as an element in the structure of MTBF and the updated MTBF;
 Implementation of the European Commission's recommendations on
further efforts in the field of public finance quality by enhancing the
efficiency and effectiveness of public spending.
PUBLIC FINANCE QUALITY
 Defining the classification of the policy areas / functional areas and the
budget programs is one of the tools to improve the strategic planning
and development of national policies in line with government priorities
and funding opportunities;
 MoF has launched an initiative to review and prioritize performance
indicators on the budgets of the FLSU in the key sectors, aiming at
identifying indicators that reflect the level of achievement of the strategic
objectives in these sectors as well as measuring the success of policies
and ongoing monitoring and assessment of the implemented policies’
dynamics;
 Extension of the scope of the institutions implementing program-based
budgeting – in addition to ministries and state agencies the FLSUs
whose budgets are included in the state budget were set to implement
program-based budgets in 2020 with the exception of the budgets of the
judiciary and the Court of Auditors, to implement a program-based
budget format.
PROGRAM-BASED BUDGETING
RESULTS
 NATIONAL REFORM PROGRAM
 CONVERGENCE PROGRAM
 NATIONAL DEVELOPMENT
PROGRAM: BULGARIA 2020
BUDGETARY
PRIORITIES
Governance Program on the
Government
of the Republic of Bulgaria
for the period 2017-2021
STRATEGIC DOCUMENTS OF THE
GOVERNMENT
BASIC PRIORITIES
SECTORAL STRATEGIES
PROGRAMS APPROVED FOR
IMPLEMENTATION
CHANGES IN IMPLEMENTATION POLICIES
STARTING NEEDED THE IMPLEMENTATION
OF NEW POLICIES
RELATIONSHIP BETWEEN THE GOVERNMENT
PROGRAM AND POLICY PLANNING
Thank you!

More Related Content

Similar to Budgeting in Bulgaria - Emil NURGALIEV, Bulgaria

Medium term budgetary frameworks - Emil NURGALIEV, Bulgaria
Medium term budgetary frameworks - Emil NURGALIEV, BulgariaMedium term budgetary frameworks - Emil NURGALIEV, Bulgaria
Medium term budgetary frameworks - Emil NURGALIEV, BulgariaOECD Governance
 
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, Montenegro
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, MontenegroOECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, Montenegro
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, MontenegroOECD Governance
 
Opinion on Changes in budget cycle procedures (22/07/2014)
Opinion on Changes in budget cycle procedures (22/07/2014)Opinion on Changes in budget cycle procedures (22/07/2014)
Opinion on Changes in budget cycle procedures (22/07/2014)airefcomunicacion
 
1.1._vanina_albanian_pfm_reform_indicators.pptx
1.1._vanina_albanian_pfm_reform_indicators.pptx1.1._vanina_albanian_pfm_reform_indicators.pptx
1.1._vanina_albanian_pfm_reform_indicators.pptxMahmoud998660
 
Budgeting in Croatia - Ivana JAKIR BAJO, Croatia
Budgeting in Croatia - Ivana JAKIR BAJO, CroatiaBudgeting in Croatia - Ivana JAKIR BAJO, Croatia
Budgeting in Croatia - Ivana JAKIR BAJO, CroatiaOECD Governance
 
Memorando de entendimento
Memorando de entendimento Memorando de entendimento
Memorando de entendimento jotiroso
 
Memorando troika en
Memorando troika enMemorando troika en
Memorando troika enallrankings
 
Memorando de entendimento
Memorando de entendimentoMemorando de entendimento
Memorando de entendimentojotiroso
 
Budgeting in Kazakhstan - Vagiz KHISMATULIN, Kazakhstan
Budgeting in Kazakhstan - Vagiz KHISMATULIN, KazakhstanBudgeting in Kazakhstan - Vagiz KHISMATULIN, Kazakhstan
Budgeting in Kazakhstan - Vagiz KHISMATULIN, KazakhstanOECD Governance
 
Memorando troika 04 05-2011
Memorando troika 04 05-2011Memorando troika 04 05-2011
Memorando troika 04 05-2011Blind Kopy
 
Budgeting in France - Delphine MORETTI, OECD
Budgeting in France - Delphine MORETTI, OECDBudgeting in France - Delphine MORETTI, OECD
Budgeting in France - Delphine MORETTI, OECDOECD Governance
 
Opinion on Compliance with Deficit and Debt Targets
Opinion on Compliance with Deficit and Debt TargetsOpinion on Compliance with Deficit and Debt Targets
Opinion on Compliance with Deficit and Debt Targetsairefcomunicacion
 
O programa de ajustamento económico para Portugal - Décima Primeira Revisão
O programa de ajustamento económico para Portugal - Décima Primeira Revisão O programa de ajustamento económico para Portugal - Décima Primeira Revisão
O programa de ajustamento económico para Portugal - Décima Primeira Revisão Cláudio Carneiro
 
Lettera Padoan Ue 21 novembre 2014
Lettera Padoan Ue 21 novembre 2014Lettera Padoan Ue 21 novembre 2014
Lettera Padoan Ue 21 novembre 2014ilfattoquotidiano.it
 
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)gordana comic
 
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...Evolving of PFM for economic policy - game of tools and rules (focus on Slove...
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...OECD Governance
 

Similar to Budgeting in Bulgaria - Emil NURGALIEV, Bulgaria (20)

Speech Milovan Filimonovic, SIGMA, Paris, 4 December 2015
Speech Milovan Filimonovic, SIGMA, Paris, 4 December 2015Speech Milovan Filimonovic, SIGMA, Paris, 4 December 2015
Speech Milovan Filimonovic, SIGMA, Paris, 4 December 2015
 
Medium term budgetary frameworks - Emil NURGALIEV, Bulgaria
Medium term budgetary frameworks - Emil NURGALIEV, BulgariaMedium term budgetary frameworks - Emil NURGALIEV, Bulgaria
Medium term budgetary frameworks - Emil NURGALIEV, Bulgaria
 
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, Montenegro
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, MontenegroOECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, Montenegro
OECD, 10th Meeting of CESEE Senior Budget Officials - Bojan Paunovic, Montenegro
 
Opinion on Changes in budget cycle procedures (22/07/2014)
Opinion on Changes in budget cycle procedures (22/07/2014)Opinion on Changes in budget cycle procedures (22/07/2014)
Opinion on Changes in budget cycle procedures (22/07/2014)
 
1.1._vanina_albanian_pfm_reform_indicators.pptx
1.1._vanina_albanian_pfm_reform_indicators.pptx1.1._vanina_albanian_pfm_reform_indicators.pptx
1.1._vanina_albanian_pfm_reform_indicators.pptx
 
STRATEGIC PLAN 2018-2021
STRATEGIC PLAN 2018-2021STRATEGIC PLAN 2018-2021
STRATEGIC PLAN 2018-2021
 
Budgeting in Croatia - Ivana JAKIR BAJO, Croatia
Budgeting in Croatia - Ivana JAKIR BAJO, CroatiaBudgeting in Croatia - Ivana JAKIR BAJO, Croatia
Budgeting in Croatia - Ivana JAKIR BAJO, Croatia
 
Memorando de entendimento
Memorando de entendimento Memorando de entendimento
Memorando de entendimento
 
Memo portugal
Memo portugalMemo portugal
Memo portugal
 
Memorando troika en
Memorando troika enMemorando troika en
Memorando troika en
 
Memorando de entendimento
Memorando de entendimentoMemorando de entendimento
Memorando de entendimento
 
Budgeting in Kazakhstan - Vagiz KHISMATULIN, Kazakhstan
Budgeting in Kazakhstan - Vagiz KHISMATULIN, KazakhstanBudgeting in Kazakhstan - Vagiz KHISMATULIN, Kazakhstan
Budgeting in Kazakhstan - Vagiz KHISMATULIN, Kazakhstan
 
Memorando troika 04 05-2011
Memorando troika 04 05-2011Memorando troika 04 05-2011
Memorando troika 04 05-2011
 
Budgeting in France - Delphine MORETTI, OECD
Budgeting in France - Delphine MORETTI, OECDBudgeting in France - Delphine MORETTI, OECD
Budgeting in France - Delphine MORETTI, OECD
 
ELECT 104 REPORT REFERENCES.pdf
ELECT 104 REPORT REFERENCES.pdfELECT 104 REPORT REFERENCES.pdf
ELECT 104 REPORT REFERENCES.pdf
 
Opinion on Compliance with Deficit and Debt Targets
Opinion on Compliance with Deficit and Debt TargetsOpinion on Compliance with Deficit and Debt Targets
Opinion on Compliance with Deficit and Debt Targets
 
O programa de ajustamento económico para Portugal - Décima Primeira Revisão
O programa de ajustamento económico para Portugal - Décima Primeira Revisão O programa de ajustamento económico para Portugal - Décima Primeira Revisão
O programa de ajustamento económico para Portugal - Décima Primeira Revisão
 
Lettera Padoan Ue 21 novembre 2014
Lettera Padoan Ue 21 novembre 2014Lettera Padoan Ue 21 novembre 2014
Lettera Padoan Ue 21 novembre 2014
 
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)
Pismo o namerama Vlade R.Srbije MMF februar 2015 (eng)
 
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...Evolving of PFM for economic policy - game of tools and rules (focus on Slove...
Evolving of PFM for economic policy - game of tools and rules (focus on Slove...
 

More from OECD Governance

Public Integrity Indicators Slides
Public Integrity Indicators SlidesPublic Integrity Indicators Slides
Public Integrity Indicators SlidesOECD Governance
 
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...OECD Governance
 
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...OECD Governance
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE) ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)OECD Governance
 
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...OECD Governance
 
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...OECD Governance
 
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...OECD Governance
 
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...OECD Governance
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmOECD Governance
 
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...OECD Governance
 
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...OECD Governance
 
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...OECD Governance
 
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...OECD Governance
 
Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023OECD Governance
 
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...OECD Governance
 
Digital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsDigital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsOECD Governance
 
Buliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfBuliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfOECD Governance
 
Session-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxSession-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxOECD Governance
 
Session-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxSession-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxOECD Governance
 
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxSession-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxOECD Governance
 

More from OECD Governance (20)

Public Integrity Indicators Slides
Public Integrity Indicators SlidesPublic Integrity Indicators Slides
Public Integrity Indicators Slides
 
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
 
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE) ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
 
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
 
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
 
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
 
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
 
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
 
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
 
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
 
Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023
 
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
 
Digital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsDigital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and Recommendations
 
Buliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfBuliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdf
 
Session-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxSession-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptx
 
Session-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxSession-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptx
 
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxSession-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
 

Recently uploaded

War in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAWar in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAival6
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Christina Parmionova
 
Water can create peace or spark conflict.
Water can create peace or spark conflict.Water can create peace or spark conflict.
Water can create peace or spark conflict.Christina Parmionova
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.SERUDS INDIA
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...JSchaus & Associates
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxNAP Global Network
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Christina Parmionova
 
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS: relato de expe...
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS:  relato de expe...O Conselho Estadual de Cultura e o Incentivo à Cultura no RS:  relato de expe...
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS: relato de expe...Alvaro Santi
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...Christina Parmionova
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.ahcitycouncil
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Christina Parmionova
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docxJIT KUMAR GUPTA
 
CBO’s Work on Health Care and a Call for New Research
CBO’s Work on Health Care and a Call for New ResearchCBO’s Work on Health Care and a Call for New Research
CBO’s Work on Health Care and a Call for New ResearchCongressional Budget Office
 
My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54mmazurak
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonAryaCapale
 
Parents give a charity ideas for children
Parents give a charity ideas for childrenParents give a charity ideas for children
Parents give a charity ideas for childrenSERUDS INDIA
 
Item # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW DirectorItem # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW Directorahcitycouncil
 
Sensitivity Training for 2023 BSKE.pptx
Sensitivity Training for  2023 BSKE.pptxSensitivity Training for  2023 BSKE.pptx
Sensitivity Training for 2023 BSKE.pptxAllidaacLuap
 
Children who live with Grandparents are really lucky
Children who live with Grandparents are really luckyChildren who live with Grandparents are really lucky
Children who live with Grandparents are really luckySERUDS INDIA
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfcoalitionindiasanita
 

Recently uploaded (20)

War in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAWar in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USA
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024
 
Water can create peace or spark conflict.
Water can create peace or spark conflict.Water can create peace or spark conflict.
Water can create peace or spark conflict.
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.
 
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS: relato de expe...
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS:  relato de expe...O Conselho Estadual de Cultura e o Incentivo à Cultura no RS:  relato de expe...
O Conselho Estadual de Cultura e o Incentivo à Cultura no RS: relato de expe...
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docx
 
CBO’s Work on Health Care and a Call for New Research
CBO’s Work on Health Care and a Call for New ResearchCBO’s Work on Health Care and a Call for New Research
CBO’s Work on Health Care and a Call for New Research
 
My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54My Burning Issue: "War in Ukraine" Cycle 54
My Burning Issue: "War in Ukraine" Cycle 54
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO Quezon
 
Parents give a charity ideas for children
Parents give a charity ideas for childrenParents give a charity ideas for children
Parents give a charity ideas for children
 
Item # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW DirectorItem # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW Director
 
Sensitivity Training for 2023 BSKE.pptx
Sensitivity Training for  2023 BSKE.pptxSensitivity Training for  2023 BSKE.pptx
Sensitivity Training for 2023 BSKE.pptx
 
Children who live with Grandparents are really lucky
Children who live with Grandparents are really luckyChildren who live with Grandparents are really lucky
Children who live with Grandparents are really lucky
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdf
 

Budgeting in Bulgaria - Emil NURGALIEV, Bulgaria

  • 1. МИНИСТЕРСТВО НА ФИНАНСИТЕ KEY POINTS ON PROGRESS IN THE BULGARIAN BUDGETARY PROCESS AFTER THE LATEST REVIEW IN 2009 Emil Nurgaliev, Budget Directorate REPUBLIC OF BULGARIA MINISTRY OF FINANCE
  • 2.  Constitution of the Republic of Bulgaria  Public Finance Act  State Debt Act  Tax laws  Annual State Budget Law  Annual Law on the Budget of the State Social Security  Annual National Health Insurance Fund Budget Law  Rules for the Organization and Procedures of the National Assembly  Rules for the Organization of the Council of Ministers and its administration  Other The Public Finance Act (adopted 2013):  Consolidates all aspects of the management and use of public resources on both national and local level;  Regulates the scope, structure and content of the medium-term budget framework;  Adopts all the requirements of Directive 85/2011. LEGAL FRAMEWORK
  • 3.  Full compliance with the requirements for fiscal rules and constraints, including follow-up actions in case of deviations from the fiscal rules; changes relating to the value of the medium-term budget objective of the structural deficit;  Extending the scope by including more information on the General Government sector in the national budget documents, with the forecast of the key indicators for the next three years being developed on the basis of unchanged government policies and describing the envisaged new policies with financial impact - the so-called "discretionary measures";  Information on the overall impact of the activities of the enterprises falling within the General Government sector, on the fiscal indicators of the sector;  Information on contingent liabilities with a potentially significant impact on the General Government sector. BUDGET FRAMEWORK
  • 4.  Comparing the forecast of the Ministry of Finance for the main budget indicators of the General Government sector with the latest available forecast of the European Commission for the budget perspectives of Bulgaria;  Creating conditions for sustainable and long-term balancing of the spending responsibilities of the municipalities and enhancing their budgetary discipline; a procedure for financial recovery of municipalities was introduced and a number of measures were taken to achieve financial sustainability and stability of local finances;  Clear definition of the scope and the procedure for determining the budgetary relations of the municipalities with the state budget throughout establishment of basic relations between them. The size of the budgetary relations is adopted by elements in the State Budget Law. There is a detailed definition of the terms and conditions for implementing any changes in them. BUDGET FRAMEWORK
  • 5. Main principles to be observed in public finance management:  comprehensiveness, accountability and responsibility, adequacy, economy, efficiency and effectiveness, transparency, sustainability and conformity with the law. Expenditure classification in the budgets of first-level spending units (FLSU):  by indicators of economic and functional classifications;  the expenditures in the budgets of FLSU, which implement a program- based budget format, are classified by policy area/functional area and by budget program within the competence and responsibility of the respective FLSU;  the expenditures of the National Assembly are classified by functional area, while the expenditures of the judiciary are accepted by separate bodies as well. THE PUBLIC FINANCES MANAGEMENT SYSTEM
  • 6.  The public finances management system is built on a broad basis and the medium-term budgetary framework has become an operational tool for medium-term forecasting and planning through the implementation by central and local authorities of stringent fiscal rules and the provision of a stable framework related to the development and reporting by a program- based budget format; 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 2010 2011 2012 2013 2014 2015 2015 2016 2017 Medium-Term Budgetary Framework Index BG EU 28 Fine-tuned methodology  Since the entry into force of the Public Finance Act in 2014 Bulgarian MTBF index outpaced EU-28 average Source: EC, DG ECFIN THE PUBLIC FINANCES MANAGEMENT SYSTEM
  • 7.  In addition to the estimates by the national methodology (CFP - cash- based indicators), the MTBF also includes the estimates for the GG Sector and its subsectors according to the European System of Accounts (ESA'2010), taking into account the impact on the budgetary framework of state and municipal enterprises and quasi-budget organizations;  Provides a stable framework for the development and reporting by a program-based budget format. THE PUBLIC FINANCES MANAGEMENT SYSTEM
  • 8.  Fiscal rules (on balance, debt and expenditures) have been set, aiming at defining clear and transparent fiscal policy constraints in the long run constituted in imposing numerical constraints on the main budgetary aggregates. Source: EC, DG ECFIN  Numerical Fiscal Rules and an Independent Fiscal Council ensure for prudent and predictable fiscal policy. Bulgaria ranks on top of Fiscal Rule Index among EU member. -2 -1 0 1 2 3 4 2010 2011 2012 2013 2014 2015 2016 2017 Standardised fiscal rules index BG EU min in EU max in EU FISCAL RULES
  • 9. Fiscal rules and actual outcomes -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2010 2011 2012 2013 2014 2015 2016 2017 2018 % of GDP Public debt Public expenditures Budget Balance Public debt Budget balance Public expenditures  PFA (into force since 2014) built on the previous State Budget Organic Law, which already ensured a good framework for sound fiscal performance.  There have been two major slippages in the fiscal position, due to shocks exogenous to the public sector:  following the global financial crisis (2009–10) and  in 2014 when a major domestic commercial bank received liquidity support from the state.  In both cases, immediate correction measures were taken. Source: Eurostat, MoF FISCAL RULES
  • 10. FISCAL COUNCIL  Carries out its activity in the National Assembly and is administratively served by its administration;  Is not subordinate to the executive power, performs its functions independently of the government and reports its work to the National Assembly;  Produces reasoned opinion and recommendations about the macroeconomic framework (Spring and Autumn), the state budget act, on the draft acts of the state social security budget and of the budget of the National Health Insurance Fund, on the drafts of the medium-term budgetary forecast, and of other strategic documents of the Council of Ministers, on the execution of the state budget, of the budgets of the state social security and of the budget of the National Health Insurance Fund;  Monitors compliance with numerical fiscal rules;  Upon established significant divergence of the macroeconomic forecasts from the reported data for a period of at least four consecutive years, recommend to the minister of finance to take measures for correcting the divergence.
  • 11.  Introduction of comprehensive, coherent and reliable practices for forecasting and monitoring of the General Government sector;  Bulgaria provides periodically information to the European commission on its medium-term budgetary outlook in ESA'2010 terms;  Introduction of forecasting and monitoring practices for the sub-sectors of the General Government sector, including their debt which is done by including a set of fiscal rules for the local government sub-sectors, including debt rule;  Inclusion of the Social Security Sub-sector within the scope of the fiscal rules to cover the full scope of the sub-sectors of the General Government sector. The rules limit the ability of Social Security Funds to take on new debt and to issue guarantees. GENERAL GOVERNMENT SECTOR
  • 12.  Synchronized and in line with the deadlines and procedures of the Enhanced Economic Policy Coordination Mechanism - the European Semester;  Ensures the sustainability and consistency of processes and procedures for the allocation and management of financial resources;  Involvement of all responsible institutions - both budget entities and legal entities that, although not part of the consolidated fiscal program, fall within the scope of the General Government sector;  Not a specific assignment of revenues;  Strengthening of the interaction among the legislative, executive, judiciary and municipalities in order to conduct a prudent fiscal policy. BUDGET PROCEDURE
  • 13.  Bulgaria has made continuous progress over the years, reported by the International Budget Partnership (IBP) initiative, whose Open Budget surveys for Bulgaria date back to 2006. According to the latest Open Budget Index 2017, our country ranks 21st out of a total of 115 countries on budget transparency, placing it among countries with a significant level of transparency, and the assessment based on the Open Budget Index reaches 66% out of 100%;  The Ministry of Finance is taking steps to make the main budget documents available to the public with a possibility of receiving a feedback;  The Citizen Budget is distributed through different channels and to different target groups – Budget 2019 in brief was distributed as a print copy of 100 000 among schools, tax services, customs offices and so on. BUDGET TRANSPARENCY
  • 14.  Steps to increase the opportunities for participation of the public in discussions of implemented policies and the access to budget information and for improving its quality and scope;  Effective interaction with the Fiscal Council is a factor for enhancing the quality of budget documents, for compliance with the fiscal rules and for potential risks to the budget;  According to the latest Open Budget Index 2017, our country ranks among countries with a significant level of transparency. 21-st rank of 115 countries Open Budget Index, 2017 BUDGET TRANSPARENCY
  • 15.  Undertaking an expenditure review, in a joint project with the World Bank, for identifying the necessary reforms in different sectors - the review has covered 7 ministries, for which the MoF's internal analysis has revealed a significant potential for improving their cost efficiency and effectiveness, as well as 21 municipalities, including those undergoing a rescue procedure;  An review of the Ministry of Foreign Affairs budget, initiated in 2019 to improve the efficiency and effectiveness of MFA spending;  Identification of key performance indicators for the policies in different sectors in order to track the progress towards achieving the targets, incl. national targets within the framework of the European strategic documents as an element in the structure of MTBF and the updated MTBF;  Implementation of the European Commission's recommendations on further efforts in the field of public finance quality by enhancing the efficiency and effectiveness of public spending. PUBLIC FINANCE QUALITY
  • 16.  Defining the classification of the policy areas / functional areas and the budget programs is one of the tools to improve the strategic planning and development of national policies in line with government priorities and funding opportunities;  MoF has launched an initiative to review and prioritize performance indicators on the budgets of the FLSU in the key sectors, aiming at identifying indicators that reflect the level of achievement of the strategic objectives in these sectors as well as measuring the success of policies and ongoing monitoring and assessment of the implemented policies’ dynamics;  Extension of the scope of the institutions implementing program-based budgeting – in addition to ministries and state agencies the FLSUs whose budgets are included in the state budget were set to implement program-based budgets in 2020 with the exception of the budgets of the judiciary and the Court of Auditors, to implement a program-based budget format. PROGRAM-BASED BUDGETING
  • 17. RESULTS  NATIONAL REFORM PROGRAM  CONVERGENCE PROGRAM  NATIONAL DEVELOPMENT PROGRAM: BULGARIA 2020 BUDGETARY PRIORITIES Governance Program on the Government of the Republic of Bulgaria for the period 2017-2021 STRATEGIC DOCUMENTS OF THE GOVERNMENT BASIC PRIORITIES SECTORAL STRATEGIES PROGRAMS APPROVED FOR IMPLEMENTATION CHANGES IN IMPLEMENTATION POLICIES STARTING NEEDED THE IMPLEMENTATION OF NEW POLICIES RELATIONSHIP BETWEEN THE GOVERNMENT PROGRAM AND POLICY PLANNING