The comparative analysis of the defence system costs of the Republic of Serbia and the NATO member states

Abstract

By analysing the current state of the budget funds that are allocated for financing the defence system of the Republic of Serbia, on the one hand, the paper presents theoretical knowledge about budget process, and, on the other hand, the comparative analysis of the costs of the defence system of our country and the defence costs of neighbouring countries and some NATO member states has been conducted. Due to the specificity of the defence financing through budget allocations, and thus strict financial discipline and control, the objective of the paper is to consider the possibility of more efficient use of public expenditure funds, both through the perspective of planning and executing budget in the defence system. Furthermore, the problems in budget execution, the necessity of good planning and adequate distribution of budget funds, as well as the importance of having a favourable structure of the defence expenditure has been emphasized, in order to improve the current situation in the Ministry of Defence and the Serbian Armed Forces. The conclusions of the conducted research indicate that a long-term success in the accomplishment of goals in terms of expenditure management and effective resolution of open items can only be achieved by defining and implementing an appropriate financial strategy