Canton Sarajevo receives a Budget of 1.88 billion KM

(Patria) - The Canton of Sarajevo today received a record Budget, after the Assembly of the Canton of Sarajevo adopted this document in the amount of over 1.88 billion KM for 2025.

To recall, in November last year, the Draft Budget of the Canton of Sarajevo for 2025 was adopted with an amount exceeding 1.47 billion KM.

Changes in fiscal laws at the level of the Federation of BiH at the end of last year, i.e., an increase in the minimum and average federal salary, inevitably affected the increase in numerous cantonal expenditures that are legally based on new federal bases. This is one of the reasons for the increase in the proposed Budget of the Canton of Sarajevo.

Also, the adoption of the Canton of Sarajevo Budget was preceded by a broad public debate in which 131 entities from almost all areas under the jurisdiction of the Canton of Sarajevo participated, after which the requested increase in own revenues, donations, and transfers of budget users occurred.

The Minister of Finance of the Canton of Sarajevo, Afan Kalamujić, as the lead in the preparation of this document, also addressed the expenditure increases based on collective agreements.

"I would like to note that the Government of the Canton of Sarajevo has opted for an increase in the base for all budget users from 385 KM to 400 KM, which has increased the total position of gross salaries and contributions in this Budget. The largest difference between the Proposal and the Draft concerns the allocation of 270 million KM. This includes projects carried over from last year, i.e., carried-over loan funds of 127 million marks. 84 million in earmarked funds, 12 million in own revenues of the University of Sarajevo, 500 thousand KM in donations, 34 million in transfers, and slightly over 12 million KM in other receipts have been carried over. Also, the Federation of BiH has confirmed the allocation of funds to cantons. Allocated revenues are 124 million higher compared to the Draft Budget, as budget users have carried over more funds than the expected amounts we projected in the Draft Budget," stated Minister Kalamujić.

This budget plans for an accumulated deficit of 43 million KM, which includes 3.4 million KM for the payment of enforceable court judgments, and 40 million is intended to cover deficits from previous years in accordance with legal regulations. If funds are available, we will strive to increase the amount for payments based on final court decisions, stated Minister Kalamujić.

Regarding borrowing through foreign loans, there have been changes and increases compared to the Draft in the areas of communal economy, spatial planning, environmental protection, for the reconstruction of the water supply system, and the further continuation of the construction of transport infrastructure. At the same time, some projects are being removed from the Budget due to a lack of readiness for implementation, such as Sarajevo Toplane – District Heating, where a loan of 20 million KM was foreseen. Also, the refinancing of the existing debt in the amount of 50 million euros, which was planned through borrowing from the World Bank, is being removed due to unfavorable conditions for the Canton of Sarajevo.

"This year, the Government has committed to strictly monitoring the implementation of the Budget in terms of both revenues and expenditures, and we will proceed with a rebalancing of the Budget upwards or downwards to align it with the real situation and fiscal trends," announced Minister Kalamujić.