State Capital Investment

State capital investment means the State funds allocated for the creation, acquisition or increase of the value of the current tangible and intangible assets of state and municipal institutions, public agencies and enterprises, as well as other economic entities (hereinafter referred to as public entities).

State funds are the funds of the State budget, the Privatisation Fund, and loans received on behalf of the State or with the State guarantee.

The main areas of State capital investment are: public administration, national defence, health, social and public security, environmental protection,, public order, education, culture, agriculture, transport and communications as well as other areas. State institutions and public agencies approve the priorities for investment in an appropriate area.

In accordance with these priorities, public entities prepare the draft investment projects. These projects are submitted to the supervisory bodies (State institutions and public agencies) according to the management areas, which select investment projects proposed for implementation in an appropriate year. Then the proposals are submitted to the Ministry of Finance, which prepares the Public Investment Programme, taking into consideration the preliminary distribution of funds planned for capital investment by appropriation manager and investment project. The Programme is drawn up at least for three years, and approved along with the Law on the Approval of Financial Indicators of the State and Municipal Budgets.

Upon the approval of the Public Investment Programme, the state institutions and public agencies approve the three year distribution of funds by appropriation manager and investment project.

The use of public investment funds is the responsibility of public entities, which are actual contractors of works. According to the procedures, they at least once in a half year provide the Ministry of Finance with the following information:

• on how the State capital investment is used (is there no violation of the contractual conditions, are the funds used economically);
• on the fulfillment of the evaluation criteria for an investment project after the implementation of the investment project.
• on the use of funds by each investment priority.