BUDGET FINANCING OF THE DEFENSE SYSTEM AND OPPORTUNITIES FOR IMPROVEMENT
BUDGET FINANCING OF THE DEFENSE SYSTEM AND OPPORTUNITIES FOR IMPROVEMENT

Summary/Abstract: Today, defense structures in the defense system of the Republic of Republic of Serbia face the need to operate according to economic principles in conditions of limited financial resources in order to realize priority tasks and preserve vitality, which refutes the old notion that defense is too important from a political, sociological and human point of view, to function economically. Management of financial resources was reduced to the distribution of available financial resources, with no interrelationships between tasks and financial plans. Also, the problem of translating strategic goals into financial plans that can be linked to budget funds was identified. This problem has been partially overcome by introducing program budgeting instead of line budgeting. Program budgeting implies that on the basis of certain plans, programs are made on the implementation of certain tasks that are set before the army, and then these programs are allocated funds, and budgeting is performed. In addition to all these improvements, budget financing is still unregulated because there is no financial-accounting system that will monitor the implementation of plans and programs in a modern way through budgeting and execution. In order to solve this problem, the introduction of the financial-accounting system is currently underway.

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