SDA: Budget proposal for 2026 a serious threat to fiscal stability and long-term sustainability of FBiH

(Patria) - A session of the Collegium of the Party of Democratic Action (SDA) was held in Sarajevo today.

Several conclusions were reached, which you can read below.

1. The SDA Collegium warns that the FBiH Budget Proposal for 2026, which plans new borrowing of over 2.3 billion KM to cover current spending, not development and implementation of infrastructure or energy projects, represents a serious threat to the fiscal stability and long-term sustainability of FBiH.

Such an irresponsible budget concept and record borrowing directly endanger the security and continuity of pension payments, disability benefits, and other legally guaranteed social benefits.

It is particularly concerning that, due to the decrease in the number of employed persons as a direct consequence of the poor performance of the FBiH Government, a shortfall in funds for the pension system is already planned, which is being attempted to be compensated by new borrowing, thereby shifting the burden of the current authorities' bad decisions onto future generations and the most vulnerable categories of the population;

2. The SDA Collegium points out that information about the business operations of companies connected to the closest relatives of FBiH Prime Minister Nermin Nikšić and former director of Elektroprivreda BiH from SDP, Elvedin Grabovic, reveals the abuse of public functions and political positions for the personal enrichment of government representatives and individuals close to them.

This involves millions of KM of public money that are paid to private company accounts through contracts with public enterprises and institutions under the control of the FBiH Government, under circumstances that clearly indicate a conflict of interest, favoritism, possible abuse of position, and potential criminal activities.

The business operations of companies directly connected to government representatives must not remain without an institutional response and must be the subject of an urgent and thorough investigation by the competent institutions.

We demand that the FBiH Government and the management of public enterprises immediately publish all relevant documentation, including contracts, addenda, subcontracting arrangements, payments, as well as the criteria and procedures based on which the companies that received these jobs were selected.

The SDA will, using all institutional and parliamentary mechanisms, insist on a full clarification of all circumstances and the determination of responsibility in order to protect the public interest and prevent further abuse of public funds;

3. Simultaneously with the enormous uncontrolled borrowing of the Federation of BiH, the current government of the 'Trojka' (Three parties) plans, through the management of BH Telecom, to borrow this public enterprise for 745 million KM by mortgaging its assets, in order to realize the dubious purchase of the private company Telemach.

The public must know why BH Telecom decided to make this purchase at all, what exactly it is buying, and why a loan of 745 million is being taken to buy a company that has an annual profit of barely 20 million KM.

In how many years can such an investment be paid off, especially considering the rapid development of new technologies?

Such significant business and financial requirements cannot be realized through secret negotiations with private individuals, which the management of BH Telecom is doing.

Given the nature of the current government, which has subordinated everything to favoritism towards companies owned by individuals close to them and the extraction of state money, justified suspicions also arise regarding the actions of BH Telecom's management.