JOINT PROJECT

1. JOINT PROJECT 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 Towards the more effective implementation of reforms: improving planning, budgeting, monitoring & reporting Creating preconditions for improving programming of EU assistance

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

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

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 • MoFinby 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 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 Towards the more effective implementation of reforms: improving planning, budgeting, monitoring & reporting