Seven consultative workshops, held in December 2025, were dedicated to introducing programme budgeting in healthcare institutions and improving the financial planning process in the Republic of Serbia. The workshops were implemented under the EU-funded PFM Facility project, financed by the European Union and carried out by the United Nations Development Programme (UNDP).
Unlike traditional line-item budgeting, which tracks categories of expenditure such as salaries, materials, or equipment, programme budgeting links expenditure to programmes, objectives, and measurable results. This approach more directly connects financing to outcomes, creating conditions for greater efficiency, transparency, and accountability in the healthcare system.
During the December workshops, organised in partnership with the Ministry of Finance of the Republic of Serbia, key topics were discussed:
- Improving the financial planning process and aligning the budget cycle;
- The basic principles and benefits of programme budgeting, with a focus on results and strategic objectives;
- Defining and elaborating programme structures for different types of healthcare institutions;
- The content and structure of financial plans, including programme information.
Through interactive discussions, representatives of Serbian healthcare institutions of various types provided comments on proposed programme structures and shared practical experiences from everyday work, with the aim of making future financial plans clearer, more transparent, and more results-oriented.
“It is particularly important that healthcare professionals participate in defining programme structures, as their clinical experience contributes to more realistic budgeting, better selection of performance indicators, and clearer prioritisation. Active involvement of medical staff helps ensure that financing is more closely linked to the quality of healthcare,” stated the project’s programme budgeting expert.
The project will, in February and March 2026, support a new cycle of workshops to strengthen the capacities of employees in healthcare institutions involved in budget preparation and management.
How Program Budgeting Contributes to Greater Transparency of Healthcare Spending
In a programme budget, the costs of healthcare institutions are grouped into programmes corresponding to areas of healthcare, such as paediatrics, gynaecology and obstetrics, surgery, or oncology, and are further detailed through programme activities (e.g., neonatology, cardiac surgery) and projects (e.g., maternity ward reconstruction, procurement of CT scanners, procurement of Gamma Knife equipment). For each programme, objectives are defined, and annual reports on the implementation of the programme budget present the results achieved. This information, together with performance indicators, is integrated into the regular budget cycle and made publicly available, enabling citizens to gain clearer insight into how funds are spent and what results are achieved, and to participate more actively in public debates on healthcare policies and system development priorities.