Financial Crime World

The Policy-Making Process in the Former Yugoslav Republic of Macedonia: Areas for Improvement

Planning and Budgeting Process

The Organic Budget Law (OBL) requires a clear link between planning and budgeting processes. However, the adoption of strategic priorities in 2013 and 2014 was delayed, impacting medium-term planning.

  • Key Issues:
    • Delayed adoption of strategic priorities
    • Impact on medium-term planning

Strategic Planning

Strategic plans are required to include quantified programs, activities, goals, and priorities that do not exceed ceilings defined for the next three-year period. The Ministry of Finance (MoF) is responsible for preparing an opinion based on the Financial Impact Assessment (FIA) form.

  • Key Issues:
    • Requirements for strategic plans
    • Role of the Ministry of Finance in FIA preparation

Financial Impact Assessments (FIAs)

FIAs are a critical component of the policy development process, ensuring that proposed legislation and other regulations are financially feasible. However, the capacity to assess costs is insufficient in ministries.

  • Key Issues:
    • Importance of FIAs
    • Insufficient capacity for cost assessment

Sectoral and Horizontal Strategies

These strategies often lack action plans or FIAs, making it difficult to monitor their implementation and financial impact. A review of sectoral strategies showed that they do not clearly link to specific laws or concrete commitments.

  • Key Issues:
    • Lack of action plans and FIAs
    • Inadequate linkage to specific laws

Government Instruction on Strategic Planning

There is a government instruction on how to prepare strategic plans in ministries and other state administration bodies.

  • Key Information:
    • Government instruction for strategic planning

General Secretariat’s (GS) Role

The GS plays a crucial role in managing the planning process, working closely with the Ministry of Finance and the Secretariat for European Affairs.

  • Key Issues:
    • GS’s role in planning management
    • Collaboration with other bodies

Capacity Development

There is a need for capacity development to improve the quality of FIAs, especially in estimating costs for implementation beyond the first year.

  • Key Issues:
    • Need for capacity development
    • Focus on improving FIA quality

Policy Planning and Budgeting Linkage

While legally well-linked, there are challenges in practice, particularly with sectoral and horizontal strategies.

  • Key Issues:
    • Legal linkage between planning and budgeting
    • Challenges in practice

Review of Strategies

A review of published strategies on ministries’ webpages showed that many lack details on action plans or FIAs.

  • Key Issues:
    • Lack of details on action plans and FIAs
    • Review of published strategies

Capacity Development for Ministries

There is a need to develop capacities within ministries to assess costs and link policy planning with financial opportunities of the Government.

  • Key Issues:
    • Need for capacity development in ministries
    • Focus on cost assessment and policy planning linkage