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This Law shall regulate the planning system of the Republic of Serbia, i.e. public policy system management and medium-term planning, the types and contents of the planning documents proposed, adopted and implemented by planning system participants in accordance with their respective competences, the mutual consistency of planning documents, the procedure for setting and implementing public policies and the obligation to report on the implementation of planning documents, as well as the appropriate implementation of the obligation to carry out the impact assessment on regulations and on the evaluation of these regulations' performance.

Certain terms used in this Law shall have the following meanings:

1) Public policies shall mean the courses of action of the Republic of Serbia and the courses of action of an autonomous province and a local self-government unit (hereinafter: the local government), in specific areas, with a view to achieving the desired goals at the societal level;

2) Planning system shall mean a set of planning elements, comprising:

-        planning documents;

-        planning system participants;

-        public policy system management process;

-        process of aligning the contents of planning documents with the contents of other planning documents and regulations;

-        linking the public policy adoption and implementation process with the medium-term planning process;

3) Planning system participants that set public policies by adopting public policy documents shall mean the National Assembly, the Government and local government authorities in accordance with their respective competences;

4) Other planning system participants shall mean the state administration authorities and the Government services, as well as the local government authorities and services that participate in the management system of public policies, but do not set them in accordance with their respective competences;

5) Public policy system management shall mean the process of planning public policies, assessing impact, preparing and adopting planning documents, coordination, public policy implementation, public policy implementation monitoring, public policy performance evaluation with a view to reviewing and improving them, public policy improvement based on performance evaluation findings, and reporting on public policy performance;

6) Public policy coordination shall mean the process whereby planning system participants referred to in paragraph 1, items 3) and 4) of this Article steer the work pertaining to public policy setting and implementation, with due attention given to mutual consistency of the public policies adopted and implemented by them and their prioritisation;

7) Impact assessment shall mean an analytical process conducted during the planning, formulation and adoption of public policies and regulations with a view to considering the changes to be achieved, their elements, causal and consequential relations among them, and the choice of optimum measures to achieve public policy goals (еx-ante impact assessment), as well as during and after the implementation of already adopted public policies and regulations with a view to performance evaluation, and public policy, i.e. regulation review and improvement (еx-post impact assessment);

8) Public policy implementation monitoring shall mean the collection of data during the implementation of public policies, i.e. their measures, and analysis thereof with a view to ascertaining whether the set goals are being achieved, as well as whether the foreseen measures and activities are being implemented as planned and efficiently;

9) Public policy performance evaluation shall mean the assessment of efficiency and effectiveness of a public policy that is being or has been implemented and its performance on the basis of relevant data and analyses, as well as the assessment of implementation monitoring results with a view to reviewing and improving such a policy, i.e. in order to determine whether certain changes should be introduced or not;

10) Reporting on public policy implementation and performance achieved shall mean the provision of objective, complete, verifiable and timely information to stakeholders and target groups on the implementation of adopted planning documents and public policy performance achieved;

11) Overall public policy goal shall mean a long-term goal that defines the desired condition at the societal level in the area addressed by the policy concerned;

12) Specific public policy objective shall mean an objective defined in connection with certain entities and/or relations in the area addressed by the policy concerned, whose achievement provides prerequisites for the achievement of an overall goal;

13) Public policy impact shall mean long-term influence at the societal level in the area addressed by the policy concerned;

14) Performance indicators shall mean quantitative and/or qualitative parameters defined with a view to monitoring the degree of achievement of overall public policy goals or specific public policy objectives, relative to the baseline values of those parameters.

Performance indicators may be: impact indicators (at the level of overall goals), outcome indicators (at the level of specific objectives) and output indicators (at the level of public policy measures);

15) Stakeholders shall mean authorities and organisations, natural persons and legal entities who have an interest in public policy measures;

16) Target group shall mean a group of natural persons and/or legal entities, and/or other stakeholders that are affected by public policy measures;

17) Project, for the purpose of this Law, shall mean a time-limited set of activities pertaining to one or more public policy implementation measures, linked by a clearly defined common goal, i.e. by a change desired to be achieved by means of the budget and other resources for its implementation, and by the management structure.

Other terms used in this Law, and which are defined in the law regulating the budget system, shall have the meanings defined by that law.

All the terms in this Law used in masculine gender shall imply the same terms of the feminine gender and vice versa.

In the public policy system management process, in the development and implementation of planning documents, the following principles shall be observed:

1) the cost-effectiveness principle, which implies that, in selecting public policy measures, care is taken to ensure that their benefits justify the costs incurred by them;

2) the fiscal sustainability principle, which implies that, in the development and implementation of planning documents, the established fiscal limitations on expenditures and outflows are observed, and that the effects of public policy implementation on gross domestic product growth and investments, revenues and proceeds, debt maintenance and servicing are taken into consideration;

3) the realism principle, which implies the appreciation of financial, economic, social, cultural, spatial, environmental, regional, administrative and other capacities and limitations in planning;

4) the relevance and reliability principle, which implies that the data used as the basis for planning, impact assessment and monitoring of the implementation of planning documents are collected from different relevant and reliable sources, and that appropriate analyses of the anticipated performance of planning document implementation are conducted;

5) the consistency and alignment principle, which implies mutual alignment of public policies; consistency of planning documents in terms of form, contents and terminology; alignment of hierarchically lower planning documents with hierarchically higher ones; alignment of planning documents with assumed international commitments; and alignment of regulations with adopted planning documents;

6) the planning continuity principle, which implies the cyclical character of the process of planning, implementation monitoring and performance evaluation, as well as the embeddedness of a new planning document in the preceding planning documents and in the achieved performance evaluation findings of the already implemented public policies;

7) the proportionality principle, which implies that the coverage and methods of public policy impact assessments, both ex ante and ex post, are proportionate to the significance and scale of the impact being assessed;

8) the prevention and precaution principle, which implies that public policies are set and implemented in such a manner as to prevent or reduce potential adverse impact to the minimum extent possible;

9) the equality and non-discrimination principle, which implies that, in the development and implementation of planning documents, the human and minority rights, and liberties guaranteed by the Constitution and law are observed;

10) the coordination and cooperation principle, which implies that planning appreciates the interests of other planning system participants, in particular the Government's priority goals, as well as local governments' initiatives, needs and priority goals;

11) the transparency and partnership principle, which implies that public policies are set in a transparent and consultative process, i.e. that the development and implementation of planning documents and public policy impact assessment and performance evaluation involves a transparent process of consultation with all stakeholders and target groups, including associations and other civil society organisations, scientific, research and other organisations, taking care to enable the realisation of individual legal and other interests of all stakeholders and target groups, with simultaneous protection of public interest;

12) the responsibility principle, which implies clear identification of the institutions responsible for the implementation of public policy measures and activities;

13) the time frame principle, which implies a time-limited period for the implementation of a public policy document and clearly defined time limits for the execution of the measures and activities envisaged by a public policy document;

14) the integrality and sustainable growth and development principle, which implies that the development and implementation of planning documents takes into consideration the requirements of environmental protection, fight against climate changes, reduction of climate change impact and adaptation to climate changes, prevention of over-exploitation of natural resources, increase of energy efficiency and use of renewable energy sources, reduction of greenhouse gas emissions, effects they produce on society, in particular on local communities, their development and specific character, vulnerable categories of population and on gender equality, and fight against poverty.