The activity of state enterprises and joint-stock companies with fully or majority state capital (further - SOEs) is subject to financial monitoring carried out by the Ministry of Finance. The financial monitoring is a process of selecting, processing and analyzing the economic and financial activity indicators of SOEs, in order to strengthen the financial discipline and making the use of public patrimony more efficient by the public authorities responsible for its administration.

The way of organizing and conducting the financial monitoring, of processing and utilizing of information related to the economic-financial activity of SOEs is established by Regulation on the financial monitoring of self-management public authorities, of state / municipal enterprises and of joint-stock companies with fully or majority public capital, approved by the Government Decision No. 56 of January 17, 2018.

The financial monitoring aims at evaluating and analyzing budgetary and fiscal risks related to the activity of SOEs, which can have a substantial effect on the budgetary-fiscal situation.

Also, the financial monitoring is conducted in order to get a pertinent picture of the economic and financial situation of SOEs, which are reflected in the level of profitability, efficiency and financial risk.

At the same time, the results of financial monitoring serve as an additional source of information for the Government and competent public authorities in the decision making process regarding the administration and privatization of public property or, as the case may be, regarding the restructuring decisions, attracting private investment through privatization or identifying solutions to strengthen fiscal discipline and increase efficiency of public property usage.

As well, the results of the financial monitoring are used by the competent public authorities at making forecasts on the development of the activity of SOEs, diagnosing their financial condition and the level of public patrimony management, including by estimating budget revenues in the form of dividends of the net profit obtained.

The results of the financial monitoring of SOEs economic-financial activity are submitted to the Government, Ministry of Economy and Infrastructure and Public Property Agency and are placed on the website of the Ministry of Finance.

Also, the results of the financial monitoring are presented as additional material to the draft annual budget law.