Nikšić's Government Endangers Budgets of Sarajevo Canton and BPK Goražde, Federation to Rebalance Budget Due to Lack of Funds

(Patria) - The FBiH Government has not disbursed grants to cantons amounting to 200 million KM, plunging KS and BPK Goražde into a financial crisis as they cannot disburse planned budget funds.

These funds were planned in the FBiH budget for 2024, as well as in the budgets of all cantons in the FBiH.

The FBiH Government had planned to distribute 36 million KM of the aforementioned amount to KS and 20 million KM to BPK. However, due to a lack of funds in the budget, the cantons have not received the payments.

As reported by Istraga.ba, the Federation will have to rebalance its budget, and last week FBiH Government officials met in Konjic to discuss the details of the rebalancing.

Admir Čavalić, a representative of SBiH in the FBiH Parliament, claims that KS has suspended expenditures amounting to 32.5 million KM precisely because the funds from the FBiH have not been paid.

Due to all of this, salaries for budget users and certain benefits in KS were paid late last month. There is a possibility that salaries for budget users will be reduced in the coming period, and the KS Government will have to rebalance its budget.

The situation in BPK is even worse in this regard. According to the Minister of Finance of BPK, Nedim Čolo, the current revenues in this canton's budget are insufficient to cover all expenditures.

The BPK budget for 2024 amounts to 68 million KM, with planned grant funds from the FBiH level of 20 million KM.

Čolo expressed hope that the grant funds would be paid by the end of the fiscal year, and if this does not happen, it will be necessary to plan for a potential suspension of certain expenditures and expenses for up to 45 days.

If financial stability is not achieved during that period, the relevant ministry will initiate the procedure for rebalancing the budget.