Analysis of implementation of EU policies through state budget on the basis of the ten principles of good budgetary governance
Abstract
This paper compares budget activities used while EU policies are being implemented through the state budget with the ten principles of good budgetary governance. As a result, certain isolation of budget division from the implementation and executive bodies responsible for EU programmes/projects administration and execution can been seen with the only minor exceptions.
The irony is that the main financial source ensuring the smooth financing of EU programmes/projects is the state budget. EU policies execution through state budget still meets problems such as incomprehensive legislative and non-legislative framework, frequent absence of link between non-financial and financial information, reluctancy to apply expenditure review supported by the political task to spend as much EU funds as possible, particularities of annual and multiannual budgeting, tangled administration and audit procedure.
The positive might be seen in the endeavours to improve the quality of financial information provided in State Treasury system, the interface between Information system of programme financing (the only system in the state budget responsible for budgeting, execution, monitoring and evaluation of the investment projects in accordance with the principles of performance budgeting) and Monitoring system 2014+, the budget literacy by means of seminars organised by budget division, the audit efficiency, and to provide an undistorted view on budget execution by the introduction of state budget balance adjusted by pre- financed state budget expenditures repaid by EU funds.