Opposition in Sarajevo unanimous: An uncertain year awaits us with an artificially inflated budget and large debt

(Patria) - Minister of Finance of Sarajevo Canton (KS) Afan Kalamujić announced today that the current debt of the Canton, which includes principal and interest, amounts to 800 million KM.

- With that changing. We have quarterly installment payments, we are repaying the debt - said Kalamujić, stating that the KS Government's commitment for the 2026 budget is the reprogramming, i.e., refinancing of a part of the debt.

- Our goal is to reduce interest-related obligations through more favorable conditions, to free up additional funds in the KS budget for the next year for projects for citizens, and this is precisely within the framework of active debt management - added Kalamujić.

Opposition representatives in the KS Assembly are in agreement - all budget beneficiaries in 2026, which the KS Government has set at almost two billion KM, face an uncertain year.

In an interview with the Patria News Agency (NAP), they asked why the debt has grown so much, what the vast sums of money were spent on, and how to prevent further borrowing and stabilize public finances.

Vedrana Vujović (Democratic Front) believes that debt refinancing is being presented as a success, although it is essentially managing consequences, not solving the problem.

- The debt of Sarajevo Canton, which has reached around 800 million KM, along with interest, clearly shows that this mandate has been lived beyond real budgetary possibilities.

Citizens have the right to know why the debt has grown, what it was spent on, and what concrete effect these borrowings have on the quality of life in Sarajevo Canton?

If the Government talks about active debt management, then I expect active transparency: clear data on the debt structure, interest rates, and a plan on how to prevent further borrowing and stabilize public finances.

With an accumulated deficit of 71 million KM in the 2026 budget, refinancing cannot be a substitute for responsible fiscal policy, but an indicator of its absence - says Vujović.



Faruk Selmanović (SDA) explains that the KS budget for 2026 is around two billion KM and is nominally the largest to date. However, this figure does not mean we are richer, but that the KS Government is patching holes caused by poor fiscal management.

- At today's press conference, the Minister of Finance stated that the KS Government's debt is around 800 million KM and that refinancing is planned to reduce interest rates and "free up funds for citizens".

However, this figure of 800 million represents only part of the real problem. If accumulated deficits and new borrowings are included, the total debt of Sarajevo Canton already exceeds one billion KM, which is unprecedented.

Such a level of indebtedness seriously calls into question the Canton's ability to service existing obligations without new debt - believes Selmanović.

According to him, the minister's statement seems like an attempt to calm the public, but it does not answer the key question: how will the principal debt be reduced, not just its repayment extended?

- Refinancing can temporarily ease the pressure, but without cuts and rationalization of costs, it becomes just a postponement of the problem. If 800 million is a problem, then the absence of a clear budget consolidation plan is an even bigger problem - notes Selmanović.

He assesses this budget as essentially a consumer and pre-election budget, a budget for survival, not for real development.

- Citizens must know that this is not just about refinancing, but about further movement towards unsustainable indebtedness, with a serious question of whether Sarajevo Canton can even repay these debts without deep reforms - adds Selmanović.



Jasmin Šaljić (Party for BiH) says that today's statement by the Minister of Finance confirms the opposition's claims regarding the Canton's enormous debt. In the Draft Budget for 2026, the item for borrowing is 220 million marks, and this brings us to a figure of over a billion marks.

- Despite the announced budget of almost two billion, all ministries have reduced funds compared to 2025. The budget is artificially inflated by planned loans, and significant problems are expected during its collection and execution, similar to this year, with the caveat that this budget relies twice as much on loan revenues - says Šaljić.

He continues that from real revenues, i.e., taxes, the budget foresees a decrease in revenues from all types of taxes that are the basis for its funding.

- We expect a completely uncertain budget year for all beneficiaries because the budget lacks a real basis, and all types of payments will be in question, except for salaries because it is an election year. There are also hidden borrowings, according to our estimates around 50 million, because the projects are not ready and loans for that purpose have been taken out - points out Šaljić.



Marijela Hašimbegović (Democratic Front) believes that the debt of 800 million KM is not just a number - it is proof of the total collapse of the financial system of Sarajevo Canton.

- While the Government hides behind a "record budget", the truth is much darker: the Canton is illiquid. The budget has become fictitious - projects are promised, and payments to suppliers are suspended.

Debt reprogramming is not financial wisdom - it is an admission of powerlessness, an evasion of responsibility, the price of which will be paid by future generations.

We are borrowing to cover deficits, not to build. This is economic suicide. This Government is no longer managing the crisis, it is creating it.

As a representative and fellow citizen, I refuse to remain silent while Sarajevo Canton is led to complete ruin due to incompetence and irresponsibility.

It is time for the Sarajevo Canton Government to stop putting out fires with new debts and finally account to the citizens. Today, we have 800 million reasons for alarm - warned Hašimbegović.



Mahir Dević (SDA) warns that the government in Sarajevo Canton, including the accumulated deficit, owes one billion KM.

- If we include the negative operations of cantonal public enterprises and cantonal public utility companies in the debt, we can add several hundred million KM to this billion.

We are entering an election year in which the "Trojka" will try by all means to buy the results of their inaction, which will further complicate the financial situation in KS - says Dević.



Albin Zuhrić (Democratic Front) emphasizes that if the KS Government admits today that the debt is 800 million, we can be quite sure that it is close to a billion, not 800 million.

- And even if it is 800 million, that is a terrifying figure, because it would mean they have borrowed more than 600 million since they came to power - points out Zuhrić.

Yet, he adds, the worst fact is not this debt of 800 million, which we will be repaying for years.

- The fact that they have indebted us so much, and apart from investments in public transport, they cannot show anything for that money - emphasizes Zuhrić.



(D.K.)