IPA DIRECT BUDGETARY SUPPORT IPA DIRECT BUDGETARY SUPPORT

EXPERIENCE OF SERBIA EXPERIENCE OF SERBIA

EXPERIENCES, EXPERIENCES, CHALLENGES AND CHALLENGES AND OPPORTUNITIES OPPORTUNITIES

The Case of SerbiaThe Case of SerbiaGordana Lazarevic, Assistant Minister

Background and context

Lessons from Serbian experience

• Background and Context• Budget Support under Article 15.1: “exceptional

circumstances”, requested, granted• Linked to framework of MIPD and EU focus and

on PFM fundamentals on other (2 general conditions require ongoing macro-stability & PFM stability)

• Latter implies i) explicit link to IMF programme ii) assessment of PFM dynamics especially fiduciary (PEFA norm) although for Serbia there was a separate Financial Circuits review

• Experience• Process relatively smooth, request submitted on

March19th, signature of FA on September 17th, expected 1st tranche by November: Immediate absorption

• Conditionality: arguably the highest impact under IPA programming: – eg external audit of 2008 budget done by early October,

PFIC/AA under implementation– acquis-related laws/regulations focussing on Single Market:

state aid, competition, public procurement adopted (SAA conditions under progress, prior to negotiations)

– updated PEFA earmarked and owned by the Government

• Lessons and Implications• Aid effectiveness: effective IPA financing consistent with

broader commitment to ensure aid effectiveness and Budget Support one tool in this

• Ownership of Government-clear priorities, measures, activities - strong commitment for delivery

• Use of the national systems in implementation – “on job improvements”

• Establishment of control, monitoring and reporting systems in cooperation with relevant EC institutions

• Lessons and Implications• Budget supports: works but consider Europaid

experience ag ENPI and general and sector budget support

• Consider modifying Article 15.1 IPA (1086/2006) to allow budget support on non-exceptional basis

• Impact on EU accession progress higher if Budget support is used as part of broader mix of tools: but require robust focus on programming and link to impact indicators – PAR and capacity building of civil service is becoming an undisputable priority

Contact

Ministry of FinanceSector for Programming and Management of EU funds

Kneza Milosa St. 2011000 Belgrade

Serbia

gordana.lazarevic@mfin.gov.rs

Phone: (+38111) 361 22 30

WWW.EUROPA.SR.GOV.RS