Program budgeting represents one of the main directions of this memorandum. The program budgeting process methodology is adopted by the Minister of Finance. Amendments have been made into the methodology according to Finance Minister’s decree #283 dated July 27, 2018. Amendments were focused budget preparation stage of Autonomous Republics and local self-governing units.

The decree came into effect in 2019. It means that all municipalities are obliged to prepare 2020 budgets and all supporting materials according to the updated methodology.

The updated program budgeting methodology has introduced a number of changes and new approaches in the municipal budget process. Here are listed some key changes:

  - More emphasis is done on the proper elaboration of priority documents;

  - Elaboration of the municipal medium-term action plan became mandatory for all municipalities;

  - Details are added in budget format and structure;

  - Details are added regarding supporting documents and their format – program and capital budget attachments, budgets of municipal non-profit organizations;

  - Details are added to the budget development stage and budget calendar