BiH Budget for 2025 Stalled: Amidžić Fails to Act on BiH Presidency's Order, Debt to Viaduct Grows!

(Patria) - In a statement on June 4, members of the Peace Implementation Council (PIC) Steering Board expressed their expectation that BiH authorities will adopt the state budget for 2025 in the shortest possible time, which will support the efficient and unimpeded functioning of state institutions.

"To this end, the Steering Board members call on domestic authorities to urgently secure adequate budgetary funds for the financing of state institutions, including the maintenance of general elections in 2026, ensuring the necessary financial resources for the full implementation of measures aimed at improving the integrity and transparency of the electoral process," they stated in the declaration.

They further expressed strong and unequivocal support for the independence and role of the Central Bank of BiH, and its management in achieving this goal. Steering Board members called on all relevant actors in BiH to fully respect and preserve the constitutional mandate of the Central Bank.

But what is the status of the adoption of the Budget for BiH Institutions and International Obligations for 2025?

After the Presidency of Bosnia and Herzegovina returned the draft budget to the Council of Ministers of Bosnia and Herzegovina at its session on May 13, requesting corrections, nothing new has happened since then.

"The Presidency of BiH instructs the Council of Ministers of BiH to prepare an appropriate Draft Law on the Budget of Institutions of Bosnia and Herzegovina and International Obligations of Bosnia and Herzegovina for 2025 that will be in line with the adequate needs of the institutions of Bosnia and Herzegovina, then ensure compliance with the Law on the Central Bank of BiH, and consider the legal and other arguments regarding the state significance of the so-called 'seven cultural institutions of significance for Bosnia and Herzegovina'," stated one of the conclusions for which members Denis Bećirović and Željko Komšić voted, while Željka Cvijanović voted against.

The Minister of Finance and Treasury, Srđan Amidžić, stated after the last session of the Council of Ministers of BiH this week that the Presidency of BiH, as the proposer, cannot send the Budget back for revision, which means that the Ministry of Finance has no intention of changing the Draft Budget.

Taking into account the position of the Presidency of BiH, as well as the statement of the PIC Steering Board, the Draft Budget for 2025 should ensure the financing of the seven institutions of state significance, and the solution for the payment of the debt from the Viaduct lawsuit cannot be paid from the funds of the Central Bank of BiH.

This debt, which amounted to 110 million KM at the end of March, has increased by hundreds of thousands of marks to date, considering that the daily interest is 9,000 KM.

The plan was for the state to pay this debt, as BiH is being sued by Viaduct before an arbitration court, and then to recover it from the Government of RS through a recourse claim, which incurred this debt with Viaduct. As early as 2017, the Council of Ministers of BiH and the Government of RS signed an agreement under which the entity government unconditionally committed to pay everything that becomes due, which it is now refusing to do.

The Central Bank of BiH has clearly stated that it will not pay the debt to Viaduct from its funds and that it will use all available options.

Due to Viaduct, BHANSA also found itself in trouble, as its funds from EUROCONTROL were blocked, preventing the normal operation and financing of the agency's needs.

Only after the salaries of employees and air traffic controllers were reduced did the Council of Ministers of BiH adopt a decision on a financial loan to BHANSA for normal functioning.

Otherwise, without an adopted Budget, there will be no salary increases or new employment, given that due to temporary financing, they can operate within the fiscal framework of 2024.