Despite PIC warnings, Dodik delays adoption of the 2021 Budget

(Patria) - By the end of this month, the Decision on temporary financing of institutions and international obligations of BiH for the period April - June 2021, adopted by the Council of Ministers of BiH at a session on March 17, expires. Given that there is still no scheduled session of the Presidency of BiH which should adopt the Budget and then forward it for adoption to the Parliamentary Assembly of BiH, it is certain that the Council of Ministers of BiH will soon adopt a new decision on temporary financing of institutions for the period July-September.

The communiqué of the PIC Steering Board, which held its regular session on June 1 and 2, expressed disappointment with the lack of commitment to reforms that strengthen fiscal transparency and stability, promote a single economic space, and strengthen the local economy, including within the framework of the Extended Fund Facility (EFF) requested by BiH from the International Monetary Fund.

"The PIC Steering Board reiterated that a key component of these efforts is to ensure continuous adequate financing and smooth functioning of BiH institutions and called for the adoption of the state-level budget for 2021, which will enable BiH institutions to meet their needs and fulfill their obligations," the communiqué states.

The budget has been pending in the Presidency of BiH since March 25, and the Chairman of the Presidency of BiH, Milorad Dodik, is not convening a session to adopt the budget for 2021. The budget allocated 21,684,000 KM for the fight against the coronavirus pandemic, but due to the decision on temporary financing, this money is on hold.

We remind you that a similar situation occurred last year, and the Budget was adopted by the Presidency of BiH in June 2020, and by the Parliament of BiH only at the end of July.