Financial Security - Basis of Strategic Decisions of the Management of Resources for Security and Defense
ПРОРЫВНЫЕ ЭКОНОМИЧЕСКИЕ РЕФОРМЫ В УСЛОВИЯХ РИСКА И НЕОПРЕДЕЛЕННОСТИ Сборник статей Международной научно-практической конференции 10 апреля 2015 г.; ISBN 978-5-906790-78-1
20 Pages Posted: 15 Sep 2017
Date Written: April 10, 2015
Principles of financial provision of the military forces Starting point of the financial provision of the military forces is a system of financial management in the Ministry of Defense, which should ensure the effective management of resources for security and defense, by fulfilling its functions, giving an idea of its elements. The elements of the financial management system cover the processes of planning the budget by individual programs and by paragraphs of the Unified Budget Classification (UBC), the ongoing management of the budget through the year, the management of payments through the System for Electronic Budget Payments (SEBRA) the management of investment costs and cost of material and technical supply during the accounting year, accounting and analysis, and financial management and control. Depending on the powers of officers allocating budgetary credits, the responsibilities and obligations in the allocation and management of budgetary resources and increasing cost effectiveness, the System for financial management in MoD operates on three levels. At the first level stays the Minister of Defense, as senior budgetary credits allocating officer, assisted by the Planning, Programming and Budget and Finance directorates. The function of the Minister of Defense, as primary budgetary credits allocating officer on organizing the processes of planning, programming and budgeting defense resources, shall be carried out by the Director of Planning, Programming and Budget directorate. The functions of budget implementation and execution of payments as well as the current budget implementation according to the State Budget Act are carried out by the Director of Finance directorate. On the second level stay the secondary budget allocating officers to the Minister of Defense, appointed by a Decree of the Council of Ministers (CoM) and the third level comprises the budget allocating officers of a lower level, such as military units. The mechanisms of budgetary funding of the secondary budget allocating officers and the operations of the MF in accordance with the mission, their objectives and tasks, are determined annually by Budgetary Guidelines for spending the budget. According to the doctrine of financial provision, a major source of financial resources for the activities in the field of defense, is the state budget and other sources provided by law or act of the MoD. Other sources comprise own income, target funds, regulated by decisions of the Parliament and normative acts of the Council of Ministers, and programs with external financing or foreign participation.
Keywords: financial management, financial security, national security
JEL Classification: P49
Suggested Citation: Suggested Citation