| 1. The policy dimension of the public finance system |
| 2. Increasing the efficiency and effectiveness of budget management |
| 3. Improvement of the accounting framework and function of the treasury system |
| 4. Introduction of PIFC in accordance with relevant EU standards |
| 5. Improvement the organizational structure and investment in capacity building |
| 6. Development of public-private partnership |
| 7. Public procurement system |
| 8. More efficient management of public debt |
The Revised Action Plan 1 for the implementation of the Public Administration Reform Strategy in the area of Public Finance has eight chapters. The first chapter, The Public Finance System Policy Dimension, relates to the regular preparation of a macro-fiscal framework for the entire BiH, the regular preparation of a consolidated public sector account, and a more efficient approach to the distribution of indirect tax revenues.
The second chapter is condensed into six key objectives: further harmonization of the BDF (Budget Framework Document) preparation process at all levels of government and its timely preparation, transparent spending of public funds, strengthening communication between the management of institutions and finance units, full introduction of program budgeting in public administration, timely involvement of parliament in the budget adoption process, and the inclusion of all extra-budgetary funds in the medium-term expenditure framework and the 10-step budget planning process.
The third chapter relates to the improvement of the accounting framework and treasury system function, while the fourth chapter covers the introduction of public internal financial control in accordance with relevant EU standards.
The fifth chapter, Improvement of organizational structure and investment in capacity building, emphasizes the need for a special focus on capacity building in the ministries of finance, primarily by strengthening the units responsible for the budget and fiscal policy.
The sixth and seventh chapters of the revised AP1 for the public finance area relate to the development of public-private partnership and the improvement of the Public Procurement System. Economic trends and international practice indicate the necessity of approaching the development of a public-private partnership system as one of the possible financial instruments that could boost or relieve public spending.
The eighth chapter relates to the increased efficiency of public debt management. Within this chapter, it is necessary to develop adequate regulations on public debt, borrowing, and guarantees. It is also essential to develop or procure software for public debt management and to train officials responsible for borrowing and public debt management.