Financial Service within MoD and SAF
The Decree on the Composition of the State Council and the Prince’s Cabinet, dated February 14 (February 26 according to the new calendar), 1835, established that the executive branch of the Council would comprise six departments, including the Military Affairs Department. Under Article 164 of the Decree, the Minister of War was assigned the duty to “administer all military expenditures and keep accurate and conscientious accounts thereof”.
This decree marked the first time in modern Serbian history that a military budget and accounting system, or, in today’s terms - the financial function, were institutionalized within the Serbian Armed Forces. These historical developments formed the basis for the President of the Republic of Serbia to designate February 26 as Financial Service Day.
The Financial Service of the Ministry of Defence and the Serbian Armed Forces upholds a 190-year-long tradition, developing in parallel with the Serbian state, public finances, the Ministry, and the Armed Forces from the restoration of Serbian statehood to the present day.
The organization and responsibilities of the Financial Service have been shaped throughout history to meet the needs of the military and the state’s economic capacities. Modern security challenges, risks, and threats demand a well-structured and efficient Financial Service to provide effective support in the execution of missions and tasks both nationally and abroad.
The consolidation of public finances in the Republic of Serbia, together with the state’s clear commitment to prioritizing defence spending as an investment in the country’s future, has allowed the military budget to grow steadily. This has ensured the sustained modernization of the Serbian Armed Forces with state-of-the-art weapons and equipment, significantly improved the welfare of professional service members, and enhanced their living and working conditions.
The newly introduced information systems have facilitated the digitization and automation of processes in accounting, payroll system, and a segment of health insurance through the utilization of electronic services, aiming to establish a more efficient resource and risk management and deliver improved services to users.
In response to the needs of the defence system, the Budget and Finance Sector was established within the Ministry of Defence in 2010. Its structure has changed several times aiming to effectively tackle the assigned tasks, reforms, and development goals.
