|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 field of Public Finance has eight chapters. The first chapter, The Policy Dimension of the Public Finance System, refers to the regular drafting of the macrofiscal framework for the whole BiH, the regular drafting of the consolidated account of the public sector and a more efficient approach to the distribution of income from indirect taxes.
The second chapter is reduced to six key objectives: further harmonization of the DOB drafting process at all levels of government and their timely drafting, transparent consumption of public funds, strengthening of communication between the management of institutions and finance units, full introduction of program budgeting in public administration, timely involvement of the parliament in the budget adoption process, the inclusion of all extrabudgetary funds in the medium-term expenditure framework and the 10-step budget planning process.
The third chapter refers to the improvement of the accounting framework and the function of the treasury system, while the fourth chapter covers the introduction of public internal financial control in accordance with the relevant EU standards.
Improvment of the organizational structure and investment in capacity building, emphasizes the need for a special focus on capacity building in the ministries of finance, primarily in strengthening the units which are responsible for the budget and fiscal policy.
The sixth and seventh chapters of the revised AP1 for the field of Public Finance refer to the development of public-private partnerships and the improvement of the Public Procurement System. Economic trends and international practice point to the necessity of approaching the public-private partnership development system as one of the possible financial instruments that could improve or relieve public spending.
The eighth chapter refers to increasing the efficiency of public debt management. Within this chapter, it is necessary to draft adequate regulations on public debt, borrowing and guarantees. It is also necessary to develop or acquire software for public debt management, and to train officials that are responsible for borrowing and public debt management.