Draft Budget for 2020 for the Federation Determined

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's session in Sarajevo, determined and sent to the FBiH Parliament under an urgent procedure the Draft Budget of the Federation of BiH for 2020, with a completely balanced revenue and expenditure side. The Draft Law on the Execution of the FBiH Budget for 2020 was also sent to the parliamentary procedure under an urgent procedure, which stipulates that, immediately after servicing the external and internal debt, the priority will be the payment of pensions.

The Budget of the Federation of BiH for 2020 was prepared in accordance with the budget calendar and amounts to BAM 4,954,392,401. The reason for the almost double increase in the Budget amount lies in the integration of the Federal Pension and Disability Insurance Institute, with the status of a budgetary user. Namely, the Law on Pension and Disability Insurance from 2018 provided for the inclusion of this institution in the Budget in 2020, with the aim of enabling the payment of pensions through the Unified Treasury Account, achieving greater transparency in public spending, and stability of pension payments.

The Budget of the Federation of BiH for 2020, with total revenues and receipts, as well as expenditures and outlays, is higher by BAM 2,252.5 million, or 83 percent, compared to 2019. Pension and disability insurance contributions dominate total revenues with BAM 2,074 million, or indirect tax revenues from the unified account in the gross amount of BAM 1,608 million. Total planned receipts for 2020 amount to approximately BAM 585 million, of which long-term loans and borrowings account for BAM 175 million, while short-term loans and borrowings amount to BAM 410 million. Current transfers and other current expenditures are most represented on the expenditure side with BAM 3,251 million, of which the largest amount relates to the payment of pensions for 2020, which is under the jurisdiction of the Federal Pension and Disability Insurance Institute.

The budget for 2020 plans BAM 50 million for the implementation of the Law on the Rights of Demobilized Soldiers and their Families - monetary existential allowance.

Five million BAM is planned for capital investments for the construction and modernization of railway infrastructure. On the budget of the Federal Ministry of Transport and Communications, the continuation of road infrastructure construction is planned with funds in the total amount of BAM 115 million.

Namely, by allocating funds to a special sub-account within the Unified Treasury Account, collected from the so-called clearing debt of the Russian Federation, and by paying dividends from public enterprises owned by the FBiH, the Government continues the successive financing of the construction of certain sections of expressways and highways.

A total of BAM 15 million is planned on the FBiH Government's budget for reconstruction and investment maintenance costs for the needs of the permanent accommodation of the FBiH Government in Sarajevo and Mostar. By purchasing premises for the accommodation of the bodies and institutions of the Government of the Federation of BiH, the need arose to plan funds in order to fully adapt these facilities for their intended purpose and ensure their functionality.