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Budget Planning reform within Georgian Defence System

Thursday, September 25
In the last decade, democratic reforms and the transition to the market economy changed the culture and understanding of Georgian society as it related to public spending, whose main source is - a tax payerís money. The whole society, including governmental institutions and non-governmental organizations within their increased capacity, are requiring more accurate and accessible information and are demanding to hold every governmental institution responsible for the public spending. The governmentís intention related to the transparent and accountable allocation of the tax payerís money will serve as the guiding principles for the Defence Resource Management System (DRMS) within the Georgian Ministry of Defence (MoD). The DRMS is a tool that establishes and develops short and mid-term planning within the defence system in the MoD. Defense Resources Management and Budget Planning Reform is one of the key priorities of the MoD, which aims at the elaboration of effective and efficient Program Based Budget and short and medium term development programs for Georgian Armed Forces (GAF). Last year MoD took first steps for enhancing of Defence Management. First, it deals with budget transformation to a full Program Based Budget. In terms of this transformation MoD first time started development of the Defence Integrated Program (DIP) which will serve as the basis for future development of the Program Based Budget. DIP includes requirements of the GAF and expected risks in case of lack of funding, during parliamentary or other governmental proceedings, represents the essential tool for justification of required budget or sufficient financial resources available. Elaboration of Program Based Budget will increase the transparency and accountability of the Parliament to civil society. DIP implies maintaining the high level of combat readiness of the GAF and development of prioritized directions given in strategic and intra-agency documents DIP represents the MoDís first ever attempt to put the budget planning in logical process, procedures and planning hierarchy framework. DIP development process is being operated in the pilot mode, in the parallel mode, identifies shortcomings and experience studying, which is the basis for the adjustment of the system. Effective and efficient Defence Resource Management is a highly efficient tool for managing Defence transformation while providing for the transparency of decisions - overseeing democratic, civilian and civil control of the Armed Forces, and the accountability of elected officials. It is one of the few available tools that enable planners to effectively implement capabilities-based planning and to assess the implementation of plans, programs, and budgets. The benefits of an efficient and effective security sector are to have peace and stability, combined with political and economic freedom, attracts foreign investment, boosting economic growth and development. Tato Kvamladze