Turković on crisis and inflation: The state must help and return part of the surplus revenue to citizens

(Patria) - Deputy Chairperson of the Council of Ministers of Bosnia and Herzegovina and Minister of Foreign Affairs of Bosnia and Herzegovina Bisera Turković is asking the competent institutions of the Council of Ministers of BiH to, in cooperation with the entity governments, urgently develop a plan and measures to mitigate the consequences of the energy crisis and inflation.

"Citizens of Bosnia and Herzegovina have been enduring severe economic shocks and the consequences of the global energy crisis for weeks. The state must have a response and, together with the competent institutions at other levels, develop a plan to mitigate these consequences. The increase in revenue to the single account due to inflation creates the basis and capacity for the state to react in accordance with the law, competencies, and needs.

According to data from the Indirect Taxation Authority of BiH, revenues from indirect taxes in the first five months of 2022 are higher by KM 739 million or 23.88 percent compared to the same period in 2021. This means that the state has, mainly based on the rise in prices of energy and other goods, generated over 700 million marks more in revenue compared to the same period last year.

It is necessary to consider adopting urgent decisions on how to use the surplus revenue for planned and systemic support to citizens and the economy in combating the consequences of the economic crisis.

The expert bodies of the Council of Ministers of BiH and other institutions should, in cooperation with the entity governments, the World Bank, and other international institutions that have already offered assistance, prepare an analysis, and then a strategy and plan. The surplus revenue collected from citizens and the economy must not be spent solely on current consumption," the minister stated. 

Part of the funds must be reinvested in projects for energy diversification and reducing energy dependence on a single supplier.

"The surplus revenue comes directly from taxpayers, and the state is obliged to return it to citizens through direct, targeted, and systemic support and investments in the general interest," Turković concluded.