PROGRAMSKO BUDŽETIRANJE U FUNKCIJI POVEĆANJA EFIKASNOSTI JAVNOG SEKTORA BIH
PROGRAM BUDGETING IN THE FUNCTION OF INCREASING THE EFFICIENCY OF THE PUBLIC SECTOR IN BIH

Summary/Abstract: Program budgeting (PB) represents a key instrument in public finance reform, aimed at increasing transparency and efficiency in public expenditure by linking budget allocations to measurable results. This study examines the degree of implementation and perceived challenges of PB in the public sector of Bosnia and Herzegovina, based on qualitative research conducted among eight experts from different levels of government. The findings indicate a significant implementation gap between the normative framework (PB formally introduced in 2006) and operational practice, where PB in most cases serves merely as an informative document, without full application in planning, execution, and evaluation. An asymmetric diffusion of knowledge was observed: respondents at the state level demonstrated a deeper and more comprehensive understanding of PB, whereas the cantonal level exhibited only elementary knowledge of the concept. Although respondents recognised PB’s potential to improve efficiency and transparency in the budget process, most could not provide a single concrete example of successful PB implementation in Bosnia and Herzegovina. The key barriers to implementation were identified as: lack of integrated IT systems, limited staff capacities, fragmented institutional structures, misaligned strategic documents, absence of standardised performance indicators, and limited vertical and horizontal coordination. The study concludes that effective PB implementation requires systemic support, including technical infrastructure, staff training, alignment of the legal framework, and strengthening of governance mechanisms.

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