The public finance experts of the World Bank Belgrade Office, in cooperation with the Ministry of Finance, are working on a study of public finance evaluation according to PEFA standards, i.e. standards for evaluating the public finance management systems, which for the first time this year, in addition to 31 indicators, also includes a climate component of public finances, which means parliamentary oversight of both the budget and budget audit, as well as climate indicators, i.e. the impact of climate change on public finances, as well as the impact of public spending on climate change.

Committee Chairman Veroljub Arsic informed the World Bank representatives about the role of the National Assembly and the Committee itself in the budget adoption process, the methodology itself and the documentation available to the MPs. He pointed out that by establishing a new methodology, more than ten years ago, it is possible to understand the public finance strategy, see the programme parts of the budget, as well as the sources of their financing. The Committee has also established additional mechanisms that are helpful to the members of the Committee, as well as other MPs, in interpreting and understanding the budget, such as public hearings on the budget bill before the debate at the National Assembly session, Arsic said. He particularly emphasised the role of the Subcommittee for the Consideration of Reports on Audits Conducted by the State Audit Institution, whose work helps the Committee members’ better understand the audit reports. Arsic also announced the re-establishment of the Parliamentary Budget Office mechanism, bearing in mind that all MPs have benefited from expert analyses.

The participants of the meeting also discussed the cooperation of the National Assembly, that is the Committee on Finance, State Budget and Control of Public Spending, with the Fiscal Council and the State Audit Institution, especially with regard to the consideration of sectoral reports, reports on performance audits and reports on the work of local governments, as well as new mechanisms that would enable adequate consideration of the budget in terms of green projects, namely the green budget.

Experts of the World Bank Belgrade Office, Aleksandar Crnomarkovic, Milos Markovic and Nihad Nakas, agreed with Committee Chairman Arsic that this climate component of public finances is a novel and complex topic, not only for Serbia, but for other countries as well, however, it requires parliamentary oversight, because challenges in public revenues and expenditures are also expected here. The meeting also touched on the consideration of the budget final statements accompanied by audit reports, as well as the capacities of the Committee's service for adequate support to MPs. According to the World Bank representatives in Belgrade, the draft study of the assessment of public finances according to PEFA standards is expected to be completed by the middle of this year, before the preparation of the new Public Financial Management Reform Programme.