House of Representatives of PFBiH Session: Heated Debate Expected on 2026 Budget

(Patria) - Speaker Dragan Mioković has called a session of the House of Representatives of the Parliament of Bosnia and Herzegovina for January 19 and 20, with the first item on the proposed agenda being the Draft Budget of the Federation of Bosnia and Herzegovina for 2026.

The most important financial act of the Federation is also at the top of the proposed agenda for the session of the House of Peoples, called for January 23.

The budget was proposed by the Federal Government and sent to parliamentary procedure under urgent procedure, as was the proposal for the accompanying law on budget execution for 2026.

The Government proposed that this year's budget total 8,898,279,146 KM, which is 649 million KM more than in 2025. It was explained that the main goal is sustainable public finance management, with responsible expenditure control and ensuring stable sources of financing.

The budget is aimed at fulfilling obligations to citizens and institutions, with a special focus on social protection, healthcare and pension systems, a stable business environment, and maintaining the functionality of public services, the Government also stated.

The budget also includes a 17 percent increase in pensions and regular adjustments. Expenditures for MIO/PIO have increased to four billion and 422 million KM.

The budget provides strong support to lower levels of government, with 200 million KM for cantons, 48 million KM for cities and municipalities, and an additional two million KM for 13 underdeveloped local communities in the Federation of BiH. Also, 80 million KM is allocated to the Solidarity Fund, while the housing project for young people continues with 25 million KM through the state-owned Union Bank.

Agricultural incentives have been increased to 190 million KM, and additional funds are planned from and for education, science, culture, and sports.

249 million KM is planned for the construction of highways, expressways, and main roads, ten million KM for the improvement of air traffic, five million KM for the airport in Bihać, and six million KM for the recapitalization of the FBiH oil terminals.

Allocations for the recapitalization of the Banovići mine as a strategic resource are also planned.

Alongside the budget and the law on its execution, the agenda also includes the Law on Fiscalization of Transactions in FBiH, amendments to the Law on Pension and Disability Insurance, and several other legal solutions.

Deputies who have commented on the Budget in recent days have pointed out that they received the document, which is over 700 pages long, a few days before the session, and that they had little time to familiarize themselves with all the items in the budget.