Council of Ministers Unanimously Adopts Draft Law on Budget of BiH Institutions

SARAJEVO, (Patria) - The BiH Council of Ministers unanimously adopted the Draft Law on the Budget of BiH Institutions and International Obligations of BiH for 2023, which the Ministry of Finance and Treasury will submit to the BiH Presidency, as the authorized proposer to the BiH Parliamentary Assembly, which ultimately adopts this law.

Previously, the Framework Budget Document of BiH Institutions for the period 2023-2025 was unanimously adopted, harmonized with the Global Framework of Fiscal Balance and Policies in BiH for this period, which the BiH Fiscal Council adopted at the beginning of last week.

Total revenues, receipts, and financing of BiH institutions within the budget for 2023 amount to 1,315,400,000.00 KM, which is an increase of 241.8 million KM compared to the budget of BiH institutions for 2022.

Revenues from indirect taxes are planned at 1,020,500,000.00 KM and have increased by approximately 155 million KM or 18% compared to the budget for 2022.

Other sources of financing include non-tax revenues of BiH institutions in the amount of 152,118,000.00 KM, earmarked funds for financing BiH institutions in the amount of 692,000.00 KM, carried-over surplus from the previous year in the amount of 141,100,000.00 KM, and receipts from the sale of fixed assets in the amount of 990,000.00 KM.

Total expenditures of BiH institutions amount to 1,315,400,000.00 KM and are 23% higher than in the previous year, while the servicing of BiH's external debt amounts to 1,245,966,362.00 KM, which is an increase of 426,777,243.00 KM compared to the budget from the previous year.

Thus, total expenditures of BiH institutions and servicing of BiH's external debt in the budget for 2023 amount to 2,561,366,362.00 KM and are 668,577,243.00 KM higher than in 2022.

The draft budget for 2023 primarily supports the continuation of reforms related to meeting the conditions for European Partnership, implementation of the Stabilization and Association Agreement (SAA), adaptation to programs and activities of the Ministry of Defense and other relevant ministries and institutions of BiH arising from the Partnership for Peace (PfP) program and other forms of cooperation with NATO.

At the same time, budget funds are directed towards the implementation of multi-year projects of budget users, as well as for improving the social and material status of employees in BiH institutions.

At the proposal of the Ministry of Finance and Treasury, the Decision on the base amount for calculating salaries of employees in BiH institutions for 2023 in the amount of 600.00 KM and the Decision on the amount of annual leave bonus in BiH institutions for 2023 in the amount of 450.00 KM were adopted, compared to 300.00 KM in previous years.

The base amount for salary calculation has increased compared to 2022, when it was 535.00 KM, and will be applied next month from the date of adoption of the budget of BiH institutions for 2023.

By increasing the base amount for salaries, the demands of representative trade unions in BiH institutions, which sought an increase to 630.00 KM, have been partially met.

The BiH Council of Ministers, by increasing the base amount and annual leave bonus, is following the measures taken by authorities at lower levels of government, with the aim of improving the material situation of employees due to the general trend of rising prices.

At the session, the Decision on Amendments and Additions to the Decision on the manner and procedure for exercising the rights of employees in BiH institutions to accommodation costs, compensation for separate living, and compensation for temporary reassignment was also adopted, proposed by the BiH Ministry of Finance and Treasury.

In this way, among other things, uniform accommodation cost compensation is established for all employees in institutions who are entitled to it, calculated as a certain percentage of the salary base, instead of being expressed in absolute amounts that needed to be changed after changes in the salary base.