The project to modernize the budget system in Algeria is one of the most important reforms adopted by the state in recent years, as it aims to achieve greater efficiency in managing public funds, rationalize expenditure, and improve government performance.
Objectives of this project
Moving from traditional budget to program and performance budget:
Focus on results: Instead of focusing on means, the focus is on achieving desired goals and results through government programs and projects.
Linking resources to objectives: Financial resources are allocated to programs and projects that achieve specific, measurable goals.
Improving accountability: Responsibles for achieving the desired results from the programs and projects they supervise are held accountable.
Enhancing transparency and disclosure:
Dissemination of information: Providing sufficient and clear information about the budget to the public, including its objectives, components, and how public funds are spent.
Citizen engagement: Involving citizens in the budget decision-making process through various mechanisms such as public consultations.
Rationalizing public spending:
Combating waste: Identifying waste in public spending and working to reduce it.
Improving spending efficiency: Allocating financial resources to more effective and efficient programs and projects.
Institutional capacity development:
Updating systems: Updating the systems and procedures used in preparing and implementing the budget.
Employee Training: Training employees on the latest financial and budgetary management methods.
The project to modernize and update Algeria's budget system is an ambitious project aimed at achieving radical reforms in public financial management.
Despite some challenges, the project enjoys significant government support and is expected to achieve positive results in the medium and long term.
A project to modernize and digitize budget information systems
Integrated Budgeting Information System (SIGBUD)
What is SIGBUD?
It is an integrated information system for budget preparation, aiming to digitize all stages of budget preparation and implementation.
The new budget system is based on the establishment of a budget preparation system (SIGBUD), built around nine (09) dimensions: activity, administrative body, territory, source of funding, budget proposal, economic classification according to the nature of expenditures and projects, outcome of outputs, and medium-term framing.
This programme allows the budget to be completed in accordance with the specificities of the organic law relating to finance laws (programme budget) and budget evaluation and follow-up.
This application has been installed since July 2017 on the information treasury of the Directorate General of Budget, and can be accessed via the local network of the Ministry of Finance.
A team from the Directorate General of Budget has been formed to manage the system's functionality and is currently responsible for managing the system and fine-tuning its solutions.
Another team composed of sector representatives from the Directorate of Budget General is responsible for all data entry related to the programme budget.
It is worth noting that the establishment of this system has experienced several disruptions, some technical and some contractual. The operational process, which requires data entry and control, has slowed down, initially due to the global health crisis and later due to the emergence of some technical constraints related to the system's stability.
Part of a broader project: SIGBUD is part of a broader project to digitize and modernize Algeria's budget system (MSB) with the aim of better managing public finances, which also includes other systems such as the Integrated Budget Management Information System (SIGB)
Main objectives: The system aims to achieve several main objectives, including:
Improving the efficiency and effectiveness of budget preparation and implementation.
Enhancing transparency and accountability in public financial management.
Providing accurate and up-to-date information to decision makers.
Facilitate decision-making based on accurate data.
Supporting financial and economic planning in the medium and long term.
SIGBUD System Components
The SIGBUD system consists of several main components, including:
Budget Preparation Unit: Responsible for entering financial statements, preparing, reviewing, and approving program budgets.
Budget Implementation Unit: Responsible for budget implementation, spending control, and financial reporting.
Reporting Unit: Responsible for preparing periodic and annual financial reports and analyzing financial statements.
System Management Unit: Responsible for managing, updating, maintaining the system, and ensuring data security.
Benefits of SIGBUD System
The SIGBUD system offers many benefits, including:
Improving operational efficiency: The system contributes to improving the efficiency of financial operations and reducing the time as well as effort required to prepare and implement the budget.
Increased transparency: The system enhances transparency in public financial management and allows easy access to financial information.
Improve decision making: The system provides accurate and up-to-date information to decision makers, helping them make better decisions.
Supporting financial planning: The system contributes to supporting financial and economic planning in the medium and long term.
Challenges of implementing the SIGBUD system
Despite the significant benefits it offers, implementing the SIGBUD system faces some challenges, including:
Training and qualification: Implementing the SIGBUD system requires training and qualification of employees to use the system effectively.
Integration with other systems: The integration of the SIGBUD system with other financial systems used under government supervision must be ensured.
Data Security: The security of financial data must be ensured and protected from unauthorized access.
The new Information System for Budgeting (SIGBUD) represents an important step towards digitizing public finances in Algeria and improving the efficiency and effectiveness of budget preparation and implementation. Despite some challenges, the potential benefits of the system are very significant and effective, and worth the investment and effort needed to implement it successfully.
Integrated Budget Management System (IBMS):
The Ministry of Finance launched the first phase of the Integrated Budget Management System (IBMS) on Friday, November 29, 2024.
What is the Integrated Budget Management System (IBMS)?
It is an integrated information system for managing the state's general budget, aiming to modernize public finances and improve the efficiency and transparency of budget management.
Objectives of the Integrated Budget Management System (IBMS):
Strengthening budgetary discipline: by providing accurate and reliable information about the country's financial situation, which helps in making rational decisions regarding resource allocation.
Improving the use of public resources: by rationalizing expenditures and setting spending priorities, which contributes to achieving the sustainable development goals.
Enhancing transparency: by making financial information available to the public, which enhances accountability and citizen participation in the management of public affairs.
Increasing the efficiency of public services: by simplifying procedures and reducing bureaucracy, which improves the quality of services provided to citizens.
Improving the business climate: by providing a stable and transparent financial environment, which encourages investment and contributes to economic growth.
Stages of implementing the Integrated Budget Management System (IBMS):
The system will be implemented in several stages, starting with the first stage gradually until it is generalized to all model sectors, then it will be expanded to include all ministries and public institutions.
Importance of the Integrated Budget Management System (IBMS):
This system represents an important step toward modernizing public finances in Algeria, as it will contribute to improving the management of the state's general budget, enhancing transparency and accountability, and improving services provided to citizens.
"اعداد" application for preparing the state budget:
A new application dedicated to preparing the state budget, called "اعداد", was actually presented on April 2, 2024. This application aims to update and improve the state budget preparation process, in accordance with the provisions of the Organic Law on Finance Laws 18-15.
The development of this application aims to frame the budget preparation process and provide unified data in real time, especially with regard to loan movement data, reports on priorities and planning, and comparative tables. This achievement represents a significant advance in the digitization of the budget system, which allows for more effective and transparent management of the state's financial resources.
This application will also contribute to strengthening financial governance and ensuring the best allocation of public funds, as a series of internal training courses have been organized and within other ministerial departments in order to ensure optimal ownership of the application by all actors active in the state budget preparation process. The new application "اعداد" features the following:
Ease of Use: The app features a simple and easy-to-use user interface, making it accessible to all employees involved in budgeting.
Saving time and effort: The application contributes to saving the time and effort needed to prepare a budget, as it accomplishes many tasks automatically.
Improve accuracy: The application reduces the possibility of human errors in budgeting, ensuring data accuracy and computational integrity.
Application components:
Unit One: Budget Requests:
This unit allows ministries and government agencies to submit their requests for budget appropriations for the coming year, detailing their financial resource needs for implementing their projects and programs.
Unit Two: Budget Proposals:
At this stage, the Ministry of Finance studies applications submitted by various entities and assesses their compatibility with the country's economic goals and directions. Based on this, detailed budget proposals are prepared, taking into account expected revenues and setting spending priorities.
Unit Three: Budget documents:
This unit includes all budget-related documents, from the draft law containing estimates of revenues and expenditures, to periodic reports that follow up on budget implementation and evaluate the financial performance of government agencies.
Application objectives:
Automate the budgeting process:
This application contributes to transforming the budgeting process from a traditional manual process to an automated digital process, which increases its efficiency and speed.
Providing standardized data:
The application provides a unified and comprehensive budget database, facilitating access to information and their analysis.
Facilitate the follow-up process:
The application allows monitoring the status of the budget approval movement and preparing periodic reports on the progress made in its implementation.
Developing transparency:
The application enhances transparency in the management of the state's financial resources, as it provides detailed information on how public spending is allocated and how it is used.
User training:
A series of training courses will be organized at the Ministry of Finance level and also in other ministries to disseminate the use of this application by all actors concerned with the state budget preparation process.
