How to plan the continuous activities funded by the state budget in an innovative way?
The Ministry of Finance of the Republic of Lithuania is looking for a digital solution that would allow convenient and simple planning of continious governmental operations, that are funded from the state budget.
- During the years 2022-2024 The Ministry of Finance of Lithuania is implementing a medium-term budget implementation project (i.e. moving from one-year to three-year budget planning).
- One of the activities of the project is focused on increasing the efficiency of planning of continuous activities financed from the state budget. The aim is to create an IT tool to plan the medium-term budgetary needs for ongoing activities reasonably and reliably.
- This tool will help you move from budgeting at “last year’s level” to budgeting based on objective needs and criteria. There is currently no common IT tool to help managers plan their ongoing business expenses, each are using individual methods and different IT tools.
- This raises issues of planning reliability, validity, unity, complicates planning control, limits the possibilities to plan horizontal costs (eg, salaries) in a standardized way, and makes it difficult to compare.
- The calculation of a significant part of the costs of continuing operations is linked to certain statistical indicators and estimates, which, having a unified tool, would allow to react promptly to the change of their value and to carry out planning according to the harmonized values of statistical indicators and estimates.
- Continuous activity expenses are understood as expenses necessary to ensure the performance of the existing public administration functions and the functions performed by the institution, as well as the maintenance of existing benefits or benefits for certain groups of service recipients. Usually includes ongoing, recurring expenses.
- An innovative, easy-to-use IT tool for calculating the need of funds for continious activities financed from the state budget. The solution should be based on the principles (formulas, rules) for planning various activities, that are established in legal acts.
- Given the wide range of activities and related costs, we aim to have at least 50% of continious activity funds planned through this tool.
Deadline for invitation to participate in the market consultation: August 1st.
A detailed description of the challenge and a notice of the market consultation can be found in the Central Procurement System (CVP IS): click here.