17/08/2022 09:20
The Finance Ministry said it will prepare the 2023 state budget in two formats, in the context of the public service’s transition to the new management system Enterprise Resource Planning (ERP).
According to the Finance Ministry’s annual fiscal blue print, the Strategic Framework on Fiscal Policy, due to the dynamic nature of the ERP reform in the public service and the need for a smooth transition to the new state of affairs, the Ministry will prepare two budget documents, one in the traditional form and one in the form of an Activity Based Budget (ABB) “with a view to tackling any unforeseen technical situations.”
Speaking to CNA, Melina Catsounotou, Director of the Finance Ministry’ Budget Directory, said that the Ministry must make sure that the ERP system, which is necessary for the implementation of the ABB, will be ready so that an ABB budget proposal will be submitted to the Parliament.
“But we cannot risk not to submit the budget to the Parliament and so we have also prepared the budget in the traditional form as well,” she said.
Catsounotou said the final form of the budget document will be decided in the next weeks. Our aim is to submit the ABB budget but for whatever technical reason this cannot be possible we will submit the traditional budget, she added, noting that no final decisions have been taken yet, she noted.
The Finance Ministry official also said the main difference of the ABB and the traditional budget format is that ABB facilitates accountability, efficiency and provides more flexibility to the Ministries to monitor their budgets, facilitating better management of financial and human resources.
The ABB is considered as a mechanism used by various countries to promote better results in governance, Catsounotou added, noting that the big difference of the ABB budget is that it links the use of resources with the strategic planning of every Ministry and consequently the government as a whole.
The 2023 state budget is expected to be discussed by the Council of Ministers in the end of September. According to law on fiscal responsibility the state budget should be approved by the Cabinet and submitted to the Parliament by September 30.