FBiH Government Adopts Economic Reform Program 2026-2028.

Patria
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FBiH Government Adopts Economic Reform Program 2026-2028.

(Patria) - The FBiH Government today, at the proposal of the Federal Development Planning Institute, adopted the FBiH Economic Reform Program (PER) for the period 2026-2028. The Program contains a medium-term macroeconomic and fiscal policy framework.

The FBiH Government, in accordance with its competencies and obligation to participate, is obliged to submit its contribution to the Directorate for Economic Planning, as the coordinating institution at the BiH level, for the preparation of the BiH Economic Reform Program, which is the primary purpose of this document.

The Program, as stated, follows the structure of the state-level document from the chapters on the overall framework and policy objectives, macroeconomic framework, and fiscal framework.

The Program was prepared taking into account the strategic documents and defined reforms in the Reform Agenda within the framework of the Instrument for Reforms and Growth for the Western Balkans 2024-2027.

Key guidelines and objectives for this year's PER are provided by the FBiH Government's Economic and Fiscal Policy Guidelines 2026-2028, the FBiH Development Strategy 2021-2027, valid sectoral strategies, as well as priority defined projects for further alignment of domestic legislation with EU legislation, maintaining macroeconomic stability and strengthening fiscal discipline, structural reforms, and work on Euro-Atlantic integration, as well as the previous PER for the period 2025-2027.

The overall framework and policy objectives state that the strategic determinant of the FBiH Government is the process of BiH's Euro-Atlantic integration with the aim of achieving full membership.

It is also stated that the key challenge for Bosnia and Herzegovina, and thus for the FBiH, is to increase economic growth, i.e., to remove obstacles that prevent the country from developing its potential.

It was also emphasized that sectoral structural reforms, in addition to macroeconomic and fiscal policies, are necessary to achieve these goals.

Among other things, it was stated that, considering that economic trends in the external environment, especially in the EU27 countries, will continue to determine economic trends in BiH, the FBiH will continue to be exposed to the challenge of maintaining economic growth and thus the stability of the public revenue system in the coming medium-term period.

Furthermore, it was emphasized that efficient public finance management for the purpose of economic development and financial security is the fundamental strategic goal defined by the Work Program of the FBiH Government.

The FBiH Government remains strongly committed to improving labor market functionality and creating a more competitive business environment. The establishment of a technologically more advanced fiscalization system in the FBiH will significantly impact the reduction of the informal economy.

In response to demographic challenges, the FBiH Government has paid special attention to solving problems related to the demographic future of the FBiH, and the competent ministries have begun developing strategies and policies related to this area.

The FBiH Government has adopted the Decision on the preparation of the FBiH Public Finance Management Strategy 2026-2030, which represents a sectoral strategic document of the FBiH, and defines and directs efforts towards improving the quality of public finances while promoting sustainable and inclusive economic growth through stronger incentives for reforms in the FBiH.

The PER states, among other things, that the expected growth of total revenues in 2026 is 1.2 percent, and that medium-term projections of total government revenues follow macroeconomic expectations in the movement of aggregates with which they are significantly correlated, with an expected stable annual growth rate in 2027 and 2028 of 4.9 percent.

In the medium-term period 2026-2028, an average annual growth of total expenditures and outlays of about four percent is expected.

The chapters of the Economic Reform Program were prepared by the Federal Development Planning Institute, in coordination and consultation with the relevant ministries, which is the coordinator for the preparation of the Program as determined by the requirements of the European Commission and the Guidelines for the preparation of the PER.

Work Program Adopted

The Government of the Federation of Bosnia and Herzegovina today adopted the Work Program of the Government of the Federation of Bosnia and Herzegovina for 2026. The Work Program was prepared by the Federal Development Planning Institute.

The General Secretariat of the FBiH Government is tasked with submitting the Work Program of the Government of the Federation of Bosnia and Herzegovina for 2026 to the Parliament of the Federation of Bosnia and Herzegovina.

The Work Program was prepared based on the Work Program of the FBiH Government for the mandate period 2023-2026 and the annual work plans of the federal ministries, and it is adopted in accordance with the Rules of Procedure of the FBiH Government and the Regulation on triennial and annual work planning, monitoring, and reporting in the FBiH.

Federal ministries have prepared their annual work plans for 2026, which detail activities with financing sources and expressed values for their implementation, deadlines, expected results, responsible parties, and indicators, which are integrated into a unified Work Program.

The textual part for federal ministries includes an introduction, a review of activities/projects realized by the annual work plan for the previous calendar year, then a brief description of the key directions of the annual work plan and the conducted consultation process, as well as a description of institutional capacities with an analytical overview of key shortcomings and needs of administrative bodies in relation to planned measures (programs) for the next annual period, taken from the triennial work plan, as well as possible problems and risks for the realization of the annual work plan.

Also, the main programs of federal ministries, programs (measures) for their implementation, activities/projects through which these programs are realized, as well as the plan for drafting regulations by programs (measures) are presented in tabular form.

The Work Program also includes the FBiH Government's Legislative Activity Plan for 2026, which lists the titles of regulations, the planned deadline for preparation, the proposer, the need for harmonization with the EU legal acquis, and the reasons for adoption.

In 2026, the FBiH Government plans to adopt 112 laws, four decrees, 18 decisions, 48 regulations, eight strategies, and 12 other acts (instructions, programs, plans, methodologies, orders, etc.).

The overarching strategic document for the preparation of the FBiH Government's Work Program for 2026 is the FBiH Development Strategy 2021-2027, which defines the basic platform for the socio-economic development of the FBiH and on which strategic goals, programs, and priority activities, as well as relevant sectoral strategies, are based.

The Development Strategy also reflects BiH's priorities defined in the European integration process (Western Balkans Investment Plan, Green Agenda for the Western Balkans, EU Digital Strategy), as well as globally accepted sustainable development goals (Agenda 2030).

This development document is one of the key framework development documents that determine the work of the FBiH Government during its mandate period.

The primary commitment of the FBiH Government is to ensure a strong and fair economy that will enable sustainable growth, improve citizens' living standards, and reduce inequality.

The FBiH Government will pay special attention to the rule of law, the fight against corruption, creating a safe environment and maintaining the highest possible level of security, as well as the sustainability of public spending, creating a favorable business environment by encouraging investments, supporting entrepreneurship, creating new values in the business and labor markets, protecting workers' rights, and reducing poverty and inequality.

The commitment also extends to empowering women, improving social inclusion, slowing down the depopulation of regions by improving citizens' quality of life, accelerating the green and digital transition, as well as fulfilling the conditions within the framework of Bosnia and Herzegovina's accession process to the European Union.

The priorities of the FBiH Government in 2026 are also focused on adopting key legal solutions and important sub-legal acts, as well as sectoral strategic documents that will contribute to the regulation of these areas.

30 New Occupations

The FBiH Government, at the proposal of the Federal Statistical Office, today adopted the Decision on Amending the Decision on the Classification of Occupations in the FBiH. This decision supplements the Code List of Occupations with 30 new ones.

Generally, the classification of occupations is a mandatory statistical standard that all authorities, business companies, institutions, and other legal entities in the FBiH are obliged to apply when recording, collecting, processing, analyzing, transmitting, and presenting statistical-analytical data relevant for monitoring the situation and trends in the socio-economic area.

The reasons for adopting the Decision state that the Federal Statistical Office, after conducting consultations with institutions involved in the preparation of the Classification of Occupations (FBiH Civil Service Agency, Federal Ministry of Education and Science, Federal Ministry of Labor and Social Policy, Federal Pension and Disability Insurance Institute, Federal Health Insurance Institute, Federal Employment Bureau, FBiH Tax Administration, and FBiH Public Health Institute), prepared the Proposal for Amending the Decision by defining the code and description for 30 new occupations.

These occupations are: agrometeorologist, head of housing management and maintenance service, fire protection engineer, GIS establishment and maintenance specialist, emergency medicine doctor, health nutritionist, medical laboratory diagnostics engineer, professor of democracy, professor of aesthetics, teaching assistant, teacher of democracy, teacher of German, teacher of Turkish, social media manager, head of internal audit unit, internal auditor, tourism economist, criminalistics expert for dactyloscopic identification, social worker for the elderly - gerontologist, solar system technician, tourism and hospitality technician, medical biochemist, laboratory and sanitary technician, computer-aided clothing designer, multimedia technician, web design technician, operator for crypto-protection and radar data processing, photovoltaic system installer, CNC operator, and CNC programmer.

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