KS Assembly Adopts Budget Rebalance

(Patria) - The Sarajevo Canton Assembly adopted the second budget rebalance this year in the amount of KM 1,135,335 with 18 votes "for", 16 "against", and one abstention. Opposition party representatives voted against the rebalance, sharply criticizing this document.

KS Minister of Finance Jasmin Halebić stated that the first amendments to the budget included measures from the FBiH Government, and now initiatives from the ministries of transport, health, etc., are included.

The main reason for preparing the Budget Rebalance, the minister noted, is to expedite the payment of financial support to entrepreneurs in KS, whose businesses have been affected by the negative consequences of the coronavirus spread.

"In constant communication with the FBiH Ministry of Finance regarding IMF funds, we received information that they will soon be transferred to the cantonal level, intended for combating all consequences of the epidemic. Events in June showed that certain types of revenue are not being realized at 100% according to projections. This did not surprise us much. We noticed that profit tax, as one of the significant sources for budget revenue, is approaching the amount planned in the first rebalance. Other budget financing sources have also approached the planned amounts. We had a situation where the expenditure side of the budget has problems because certain expenditures are increasing. We could not pay entrepreneurs in KS the support that was planned in the first budget amendments. In this rebalance, we have tried to enable the functioning of public finances in KS in this situation," said Minister Halebić.

He stated that the difference compared to the first rebalance is 20 million KM. He appealed that they can no longer postpone the realization of IMF funds.

"We will plan the IMF funds together with other revenues that fill the budget, and such a procedure offers us the possibility to make payments from regular budget revenues. And once these IMF funds arrive, they will be included in the budget along with other revenues. For now, we have optimal budget liquidity and can pay part of the measures up to 20 million KM, which is intended for salary payments," said Halebić.

He reminded that calls for April and May have been processed and that funds in the amount of about nine million KM will be paid to business entities very soon.

Representatives had several questions, including why the funds for maintaining the Smiljevići landfill were drastically reduced, "what forced them to increase salaries when the real sector is in such a difficult situation," and why funds for travel expenses were increased.

Halebić explained that they are not increasing salaries but adding to those whose amounts were insufficient compared to before, meaning they realized that there would be no money left for salary payments to workers in certain public institutions such as kindergartens and schools.

Representatives also adopted the Proposal of the Law on Amendments to the Law on Execution of the Sarajevo Canton Budget for 2020, with the same number of votes as for the rebalance.

The session of the KS Assembly was adjourned, and the public will be informed about its continuation.