Prime Minister Novalić calls on MPs to support the Budget for 2020

SARAJevo, (Patria) - After a break, during which the SDA Club President Osman Ćatić gathered MPs in the corridors, individual voting began on the urgent procedure for the Bill on the Execution of the FBiH Budget for 2020.

The proposal received support in individual voting. 

The following agenda was then adopted: Bill on Amendments to the Law on the Treasury in FBiH – urgent procedure, Bill on Amendments to the Law on Contributions – urgent procedure, Bill on Amendments to the Law on Budgets in FBiH - urgent procedure, Bill on the FBiH Budget for 2020 – urgent procedure, and Bill on the Execution of the FBiH Budget for 2020 – urgent procedure.

Also on the agenda are the Proposal of the Decision on Granting Consent to the Financial Plan of the Federal Employment Service for 2020 and the estimate of the plan for 2021 and 2022 and the Decision on the Execution of the Financial Plan of the Federal Employment Service for 2020, the Proposal of the Decision on Granting Consent to the Financial Plan of the Health Insurance and Reinsurance Fund of the Federation of Bosnia and Herzegovina for 2020 and the decision on the method of execution of the Financial Plan of the Health Insurance and Reinsurance Fund of FBiH for 2020, and the Proposal of the Financial Plan-Budget of FERK for 2020.
 
A conclusion was then adopted to consolidate the discussion on all items. 

The discussion on the Bill on Amendments to the Law on the Treasury in FBiH was opened by the representative of the working body, Albin Muslić. 

The FBiH Government stated that the reason for adopting the amendments to the Law on Amendments to the Law on the Treasury was the implementation of Article 130 of the Law on Pension and Disability Insurance, all with the aim of continuing the financial operations of the Federal Pension and Disability Insurance Fund through the Single Treasury Account of the Federation of Bosnia and Herzegovina and for the Federal Pension and Disability Insurance Fund to obtain the status of a budget user in accordance with the Rulebook on Determining and Maintaining the Register of Budget Users of the Budget in the Federation of Bosnia and Herzegovina.

Also, the reasons for adopting the amendments to the Law are contained, above all, in the aim of harmonization with the amendments to the Law on Budgets in the Federation of Bosnia and Herzegovina.

There was no discussion on this proposal, nor on the Bill on Amendments to the Law on Contributions.

Regarding the Bill on Amendments to the Law on Budgets in FBiH, MP Lana Prlić (SDP) proposed an amendment requesting a public debate on the budget for the City of Mostar.

Irfan Čengić (SDP) stated that this Bill is unconstitutional.

“Why are we giving two people the authority to spend hundreds of millions of KM in Mostar in such a wild manner. The SDP government did the same, so I don't know why we are giving them so much money for 12 years. I propose a conclusion that tasks the FBiH Government with proposing a Law on Mostar,” Čengić points out. 

He adds that laws on the cities of Ljubuški, Visoko, Gradačac, and similar have been adopted, but there are no laws on the cities of Mostar and Sarajevo. 

Sabina Ćudić (Naša stranka) asked who would implement and sign the budget, given that the Mayor of Mostar is not in the city due to health reasons. 

She added that the position of Naša stranka is that the FBiH Parliament should take over the financing of Mostar. 

Then, the Proposal of the FBiH Budget for 2020 was considered. FBiH Prime Minister Fadil Novalić explained the Budget Proposal. 

“The FBiH Budget Proposal for 2020 totals 4,954,392,401 KM and is 83.0% or 2.25 billion KM higher than the current Budget. The main reason for the increase in the Budget is the integration of the FZ MIO/PIO into the FBiH Budget, whose Financial Plan for 2020 amounts to approximately 2.4 billion KM,” said Novalić.

The expenditure side of the FBiH Budget for 2020 has also been significantly changed, i.e., increased, due to the integration of the FZ MIO/PIO, with budget expenditures increasing by 102.0 percent compared to the expenditures of the current Budget. 

“Viewed individually, expenditures are planned at 3657.0 million KM, Capital expenditures and transfers at 200.6 million KM, while interest expenditures are planned at 116.3 million KM. Therefore, the current balance is 15.8 million lower than this year and amounts to 280.3 million KM – a current surplus. Debt repayment expenditures amount to 957.3 million KM and are 247.3 million KM higher than this year. The reason for the increase in debt servicing lies in the fact that treasury bills have increased in the next year, and thus the servicing of these obligations. Specifically, external debt repayment amounts to 454.9 million KM and is 37 million KM lower than this year,” adds the FBiH Prime Minister. 

He states that if the FBiH Budget for 2020 is executed as planned, the public debt of FBiH will decrease by an additional 372.3 million KM and notes that this amount does not include interest costs, which will amount to 116.4 million KM next year.

“I want to emphasize that the Budget of the Federation of BiH for 2020 is based on conservative macroeconomic projections, taking into account the not-so-optimistic macro projections of neighboring countries and EU countries on one hand, and respecting and adhering to the principles of restrictive fiscal policy and limiting the growth of budget, i.e., current spending, on the other hand. It is important to emphasize that this budget is accompanied by a set of laws that the Government of the Federation of BiH has determined and sent for parliamentary procedure, which concern precisely the integration of the PIO/MIO Fund into the Budget of the Federation of BiH, and their amendments imply the removal of legal obstacles in the functioning of the PIO/MIO Fund as a budget user. These are the Amendments to the Law on the Treasury, Amendments to the Law on Contributions, and Amendments to the Law on Budgets in FBiH. The Law on the Execution of the Budget for 2020 stipulates that pensions will be paid as the second priority, immediately after servicing internal and external debt. This will ensure an unchanged dynamic in pension payments. Once again, I take this opportunity to remind you of the importance of adopting fiscal laws (Law on Contributions and Law on Income Tax), which will directly affect the increase in the competitiveness of the economy,” stated Novalić and called on MPs to support the Budget and accompanying laws.