EU supports improving financial management in BiH

(Patria) - The European Union is a committed partner of BiH, providing continuous support for public administration reform and improving the financial management system over the years.

Today, the final conference of the EU-funded project "Support to Public Debt Reporting in Bosnia and Herzegovina" was held in Sarajevo, marking the successful completion of a one-year project that contributes to the reform of public finance management in the country.

This project, funded by the European Union, aims to support Bosnia and Herzegovina's accession process by improving the credibility and transparency of public debt reporting and strengthening government capacities for the implementation of the European System of Accounts (ESA) at all administrative levels.

- Full implementation of ESA will make public debt data more comprehensive and at the same time understandable to the public, leading to increased accountability and better day-to-day management - stated Zakira Muratović, Assistant Minister of Finance and Treasury.

The project is designed to improve the public finance management system in Bosnia and Herzegovina, making it more transparent and aligned with EU standards.

By developing action plans to support the implementation of International Public Sector Accounting Standards, the project has not only supported better public debt reporting but has also provided a basis for long-term reforms in BiH's public finance system.

- The adoption of ESA 2010 in Bosnia and Herzegovina's public debt reporting is a vital step towards alignment with EU statistical standards. It increases data accuracy, facilitates comparability with EU member states, and strengthens fiscal transparency, which is crucial for economic stability and progress towards EU integration - says Samir Bakić, Assistant Federal Minister of Finance.

With a focus on sustainability, the project also developed action plans for the continued implementation of these standards, providing concrete recommendations for improving public debt reporting at all four administrative levels, which is crucial for the country's Economic Reform Programme.

In the period from June to October 2024, the project organized 16 specialized training sessions on public debt reporting.

These sessions were attended by 204 representatives from key institutions, including the Ministry of Finance and Treasury, the Directorate for Economic Planning of BiH, the Central Bank of BiH, the Agency for Statistics of BiH, the Federal Ministry of Finance, the Federal Bureau of Statistics of BiH. FBiH, and the Institute for Development Programming of FBiH.

- The ESA 2010 framework will contribute to improving debt statistics compilation in the Brčko District of BiH, ensuring consistency and comparability of fiscal data between different levels of government.

Its implementation in public debt reporting increases transparency and allows for the harmonization of debt definitions and scope - emphasized Anela Ilić, Head of the Budget Execution Sector at the Directorate for Finance of Brčko District.

These trainings have provided local officials with knowledge and skills, strengthening their ability to apply European standards to public finance management.

As a result, Bosnia and Herzegovina is now better equipped to manage public debt reporting, a critical area for fiscal stability and economic growth.

The successful completion of this project, implemented by Cowater International Germany GmbH, marks a significant step forward in BiH's progress towards meeting EU standards in public finance management.

With improved capacities at all levels of government, the country is in a better position to responsibly manage public debt, attract investment, and continue its path towards EU membership.

This project is part of the European Union's ongoing commitment to Bosnia and Herzegovina's EU accession path.

By investing in reforms, the EU helps lay the foundation for stronger, more transparent, and accountable institutions, key elements for strengthening trust, stability, and long-term economic development.