Draft Decision on Temporary Financing of FBiH for the First Three Months of 2022 Determined

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's urgent telephone session, determined the Draft Decision on temporary financing of the Federation of BiH for the period January - March 2022.

The Draft Decision sets the amount of temporary financing of FBiH, until the adoption of the FBiH Budget for 2022, for the first three months at 1,116,181,228 KM, based on the quarterly average of the execution of the Federation of BiH Budget in the period January - September 2021.

According to the explanation, the legal obligation to adopt the Decision on temporary financing is prescribed in Article 35 of the Law on Budgets in FBiH.

The Government of the Federation of BiH, at its 297th session held on December 30, 2021, considered the Draft Budget of the Federation of BiH for 2022, and sent it to the parliamentary procedure on an urgent basis in order to secure the necessary funds for the smooth execution of obligations from internal and external debt, social benefits, disability benefits, and pensions.

At the 29th regular session of the House of Representatives of the Parliament of the Federation of BiH, held on January 24, 2022, when determining the procedure for considering the Draft Budget of the Federation of BiH for 2022, it was decided that it would not be considered on an urgent basis, but in the regular procedure.

According to Article 35 of the Law on Budgets in BiH, if the Parliament does not adopt the budget before the beginning of the fiscal year, financing of the jobs, functions, and programs of budget users continues temporarily, based on the decision on temporary financing. Temporary financing is carried out for a maximum of the first three months of the fiscal year.

The decision on temporary financing is made by the Parliament. Temporary financing is carried out proportionally to the funds spent in the same period, and at most up to the quarterly average for the previous fiscal year. During the period of temporary financing, the same programs are financed, and users are not allowed to increase the number of employees compared to the situation on December 31 of the previous year. Accordingly, the Government of the Federation of BiH has prepared the Decision on temporary financing of the Federation of BiH for the period January - March 2022.

Temporary financing of the Federation of BiH for the period January - March 2022 is determined based on the quarterly average of execution for the nine months of 2021 in the amount of 1,116,181,228 KM. This implies that during the validity of the Decision on temporary financing of the Federation of BiH for the period January - March 2022, only those programs and projects that had execution in the specified period will be financed.