The Ministry of Finance has introduced a new procedure to accelerate the implementation of public investment projects, streamlining the use of payment credits attached to public institutions' budgets. This new step facilitates the use of these payment credits. The supervisory authority can now approve amending budgets containing these credits before the deliberation body meeting, allowing institutions to commence implementation procedures without waiting for the session. This strategic change aims to significantly reduce bureaucratic delays that have historically hindered project execution.
This measure is detailed in a memo from the Directorate General of the Budget, Ministry of Finance. The memo, dated September 20, 2026, and identified as number 5775, specifically concerns the implementation of attached payment credits during the fiscal year for investment operations granted to public administrative institutions and similar supervised public institutions. This step forms part of a broader effort by the Ministry to simplify the execution of public investment credits, reflecting a commitment to enhancing efficiency and responsiveness in public spending.
Addressing Execution Delays
The Directorate General of the Budget identified delays in consuming attached payment credits throughout the fiscal year. This problem intensified particularly for credits notified during the year's final quarter. The Directorate General of the Budget observed these delays in consuming attached payment credits during the fiscal year, a problem that became more acute as the fiscal year approached its end. Under the prior procedure, institutions were required to seek approval from their deliberation body to review the amending budget project before the supervisory authority could grant final approval. This previous procedure necessitated recourse to the institution's deliberation body to study the amending budget project before final approval by the supervisory authority.
This sequence often resulted in a significant reduction of the available time for project execution, especially when the deliberation body's session schedule did not coincide with the notification date of new credits. This procedural sequence could lead to the exhaustion of a significant portion of the remaining period for project execution, particularly when the deliberation body's session date did not align with the new credit notification date. In certain instances, this scenario meant that attached payment credits remained unused during the last quarter of the fiscal year, subsequently becoming amounts that had to be carried forward as due debts. In some cases, this situation led to attached payment credits not being consumed during the last quarter of the fiscal year, becoming amounts to be carried forward as due debts. The issue became more pronounced as the fiscal year drew to a close. The new procedure aims to reduce the risk of credits remaining unconsumed and needing to be carried forward. This adjustment ensures that funds allocated to a public project will not be held up awaiting the institution's periodic meeting to approve an amending budget if credits were attached during the year, especially towards its end. This also reduces the risk of credits remaining unconsumed and being carried forward, thereby optimizing financial resource utilization.
New Procedure Explained
The Directorate General of the Budget differentiates between the project's inherent nature and any subsequent modifications to its allocated credits. Attaching payment credits does not require a re-evaluation of an investment project's feasibility, as these operations have already been registered under commitment authorizations and previously discussed by the deliberation body. The Directorate General of the Budget distinguishes between the nature of the project and the modification of its allocated credits. Attaching payment credits does not imply a reconsideration of the investment project's feasibility, as these operations were already registered under commitment authorizations and discussed by the deliberation body. Under the new arrangement, the supervisory authority can now act prior to the deliberation body meeting. This action is based on the grant award decision, which details the specific amount of attached payment credits for each investment operation. The new arrangement allows the supervisory authority to act before the deliberation body meeting based on the grant award decision which specifies the amount of attached payment credits for each investment operation.
The Ministry of Finance memo clarifies that the new procedure does not eliminate the role of the deliberation body. Instead, it restructures the timing of its review of the amending budget. The memo does not abolish the role of the deliberation body but rearranges the timing of its review of the amending budget. Disbursing officers are now required to inform the deliberation bodies about amending budgets that have been approved by the supervisory authority during the session immediately following the attachment of payment credits. Disbursing officers are now obligated to inform deliberation bodies of amending budgets approved by the supervisory authority during the session following the attachment of payment credits. This updated process enables an institution to incorporate attached credits and proceed with their execution once supervisory authority approval is granted, with the deliberation body receiving notification in its subsequent session. The new path allows the institution to include attached credits and proceed with their execution after supervisory authority approval, with the deliberation body being informed in the subsequent session. The supervisory authority's ability to pre-approve the amending budget, followed by informing the deliberation body at its next meeting, aims to conserve time and expedite project execution and credit utilization before the fiscal year concludes. The supervisory authority can pre-approve the amending budget, and the deliberation body will be informed in its next session, saving time and speeding up project execution and credit usage before the fiscal year ends.
Broader Impact and Goals
The Ministry of Finance's memo, dated September 20, 2026, and identified as memo number 5775, outlines the new procedural changes. This arrangement aims to prevent the freezing of financial credits allocated to public investment projects, which often occurs due to existing time and procedural constraints. The Directorate General of the Budget has issued several memos during the current year concerning the execution of payment credits for public investment operations. The new procedure is intended to ensure that funds dedicated to public projects are utilized efficiently within the fiscal year, reducing instances where credits remain unconsumed and must be carried forward as due debts. This proactive approach shows the Ministry's commitment to optimizing public investment and ensuring timely completion of critical projects.