30 December, 2010

Chamber of Control of Georgia worked out a list of special public interests including all programs and events of special importance to the state.
The list of state budget-supported special programs and activities were shortlisted according to five criteria defined by the Control Chamber. First and foremost,  if they spend more than 5% of entire financial assignments of the state budget during 2-year period, if they have management problems [ignore regulations and have defects in system operation], if they are

hailed in malfeasance and power abuse, if they need system reforms [more precisely if during the last 5 years they suffered of system defects , also if there were repeated malfeasance and bad management cases, or if they are put under reforms], and if there is a big public interest toward programs and activities as far as they have significant influence on society.
As a result  ten categories have been selected as following: state supported health-insurance programs, social care and assistance system management, medical service and programs, management and financial insurance of agriculture sector, environmental programs, financial management of defense system, science support, probation system management, state foreign liabilities and management of the diplomatic representations of Georgia, and management of self-governance systems of Tbilisi and cities with more than 50 thousand population.
According to Levan Bezhashvili, Chairperson of the Control Chamber of Georgia, Control Chamber will be refreshing the List once in two years and it is not ruled out that the list will be expanded and varying as criteria and priorities may change year to year. Some of the priorities were selected based on just one criterion, some based on several criteria.
For example the state supported health-insurance programs were put in the list due to increasing public interest. These programs are supposed to improve social conditions of the socially vulnerable population on the one hand. On the other hand irrespective impressive budgetary financing they show no positive tendencies from the points of view of neither medical service quality nor medical personnel’s financial conditions and transparency of information on their rights.   
Audits of Control Chamber carried out within the agriculture system revealed defects in management and other infringements that require streamlining of the system through monitoring and audit of defects, and identification of blemishes.  Control Chamber top official underlined that agriculture is of paramount importance from economic and social points of view, and if the system is streamlined effectively it can give an impetus to development of agro-business and relative businesses alike.
Ignorance of environmental regulations and system defects can create setbacks to tourism development, while if the system is managed effectively Georgia can become a regional leader.
Significant sources diverted to defense structure define increasing public interest where the budget-based finances go and how effectively insure security of tax-payers.
As far as foreign debt has always been a subject of special interest of society Control Chamber plans to research this issue next year and provide society with authentic information how effective and sustainable the foreign debt system is.
One of the key challenges to Georgia during the coming 4-5 years is management of public finances and budgetary system reform. Starting 2012 Georgian government has to base its activity on program budget, and to insure smooth operation of this system. It has to undertake preparation works in 2011. And a long with the adoption of program budgeting Control Chamber has to start auditing of effectiveness of state programs. And audit of self-governance bodies that has direct impact on population looks of paramount importance. Audit of 2010 implemented by Control Chamber revealed number of improper management cases in this system that have common defects to all self-governance bodies.

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