House of Representatives of the FBiH Parliament adopts the Bill on the Federal Budget for 2021.

(Patria) - The House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina adopted the Bill on the Federal Budget for 2021 at its session.

For this to come into effect, this act must be approved by the House of Peoples in the same text, whose session is scheduled for tomorrow. If that happens, the Federation will have its budget for the next year in a timely manner.

The total proposed budget amount is BAM 5,481,251,899, which is BAM 27.7 million less than this year's budget, or the rebalance carried out in April.

Prime Minister of the Federation of BiH Fadil Novalić presented the Budget for 2021, noting in his introduction that the pandemic worldwide has caused disruptions. 

“This crisis came from outside economic factors, from the health sector. The financial sector is expected to ensure the continuation of liquidity in this crisis. The current crisis arose as a direct shock on the supply and demand side. Lower demand, due to lockdown as well as saving money, results in a decrease in the need for labor, which results in a decrease in the number of jobs and paid salaries, and that results in a decrease in consumption,” states Novalić. 

Novalić explained through diagrams and a presentation the procedures, decisions, and measures that the FBiH Government had adopted since the beginning of the pandemic, and their consequences on the budget.

He also explained how the “corona” law functioned, noting that indirect taxes fell the most, and that cantons are mostly financed from these indirect taxes. 

“Our real sector diligently preserved jobs and paid taxes. From the results we have achieved, we are drawing measures that need to be taken with this budget to stabilize the situation. Two of these are particularly important: GDP and jobs,” said Novalić. 

As he said, the FBiH budget for this year amounts to BAM 5,481,251,699 and is about BAM 27.7 million lower compared to the amount envisaged by the rebalance for 2020, and compared to the 2020 budget, it is almost BAM 500 million higher.

Alma Kratina, president of the DF Club, said during the debate that the budget lacks significant support for culture and sports affected by the pandemic. 

“It can be said that this could also apply to NGOs that are outside the budget, and which are outside the budgetary system. Primarily those in the social protection segment,” stated Kratina. 

The president of the SDP Club, Damir Mašić, said that they are dissatisfied that the budget adoption procedure has not been followed. 

“We in SDP believe that it is not good that we did not have the budget in draft form. We did not make megalomaniacal demands in the amendment. We propose an amendment to ensure funds for institutions of science and culture of importance to BiH, by which the envisaged amount is increased by BAM 200,000,” stated Mašić. 

He explained that the previous convocation in the 2010-2014 mandate introduced the practice of assistance for seven cultural institutions and the Academy of Sciences and Arts of Bosnia and Herzegovina.

“It is evident that in recent years, the originally envisaged funds have been reduced. Initially, it was BAM 1.1 million, then a million, then 950 thousand, and this year 800,000 BAM. This amount jeopardizes the functioning of important cultural institutions,” said Mašić. 

He added that the state has been treating them like a stepmother for years. 

Before addressing the attendees, Sabina Ćudić, president of Naša stranka, covered a hotel advertisement where the session was being held, so as not to participate in advertising. 

“I will ask three questions and present our view of the answers: who is proposing this budget, how it is being adopted, and the content of the budget,” stated Ćudić. 

She also recalled the scandals surrounding this government and the Pazarić Institute.

“This budget is being adopted illegally. You are aware that the draft budget is sent to this house, and that has not been the case for years. The Prime Minister says this is a cautious budget, and salaries and employee benefits have increased in recent years. Only increasing these items means that no new employments were foreseen in 2020. Employments are foreseen in the Ministry of Finance, the Ministry of Mining, Energy, Industry, the Employment Agency… There is also the procurement of equipment and office supplies. BAM 140,000 is also foreseen for the purchase of a car for this house,” said Ćudić. 

Mirsad Čamdžić said that Naša stranka proposed 30 amendments.