Provisional financing of FBiH for the period January-March 2015 determined

The FBiH Government today determined the Draft Decision, which sets the amount of 421,823,778 convertible marks for the provisional financing of the Federation of BiH for the period January-March 2015, or until the Budget of the FBiH for 2015 is adopted, reports the BiH news agency Patria.

The Decision on Provisional Financing is made by the Parliament of the Federation of BiH. The determined amount is equal on both the revenue and expenditure sides.

As explained, the obligation to adopt the Decision on Provisional Financing is prescribed by Article 35 of the Law on Budgets in FBiH. Namely, if the Parliament of FBiH does not adopt the budget before the beginning of the fiscal year, financing of jobs, functions, and programs of budget users continues provisionally, for a maximum of the first three months, based on the Decision.

Otherwise, provisional financing is carried out proportionally to the funds spent in the same period, but not exceeding the quarterly average for the previous fiscal year. In this way, 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. If the budget is not adopted by March 31, after that, expenditures will not be executed for any purpose except for debt repayment, until the budget is adopted.

The Decision on Provisional Financing of FBiH for the period January-March was prepared due to the circumstances in the constitution of the Parliament of the Federation of BiH, including the House of Peoples, and the high risk that it will not be constituted by the end of 2014. The goal is to ensure funds for the smooth execution of obligations from internal and external debt, social benefits, disability benefits, and pensions.