FBiH Government Adopts 2016 Budget, 977.1 Million KM Planned for Debt Repayment

The Government of the Federation of Bosnia and Herzegovina, at today's session in Sarajevo, adopted and forwarded to parliamentary procedure the Proposal of the Budget of the Federation of BiH for 2016, in the amount of 2,598,862,123 convertible marks. Compared to the Draft, the Budget Proposal has been increased by 65 million KM, reports the Bosnian news agency Patria.

Revenues of 65 million KM are planned, which would be realized through the sale of companies in which the Federation of BiH holds a minority ownership stake.

A novelty, compared to the Draft, is that within the allocation of the Federal Ministry of Energy, Mining and Industry, 3,000,000 KM is planned for capital transfers to public companies for financing development projects in the Federation of BiH.

Given that the adoption of the Law on Assuming Financing of Unsettled Obligations for MIO for the period from 1992 to 2014 is planned for 2016, an amount of 50,000,000 KM is planned for these purposes within the allocation of the Federal Ministry of Labor and Social Policy.

The Budget Proposal also allocates 1,000,000 KM within the allocation of the Federal Police Administration for the purpose of strengthening capacities for the fight against terrorism, organized crime and corruption. A special transfer in the amount of 1,000,000 KM is also foreseen for the implementation of the set of anti-corruption laws. The Government expressed its readiness to, in accordance with the degree of implementation of these laws, secure additional funds through the Budget Revision for the implementation of this set of laws.

An amount of 10,000,000 KM is planned for the Service for Joint Affairs of Bodies and Institutions of the Federation of BiH for the start of activities on the permanent resolution of accommodation for institutions of the FBiH Government in Sarajevo and Mostar.

Apart from these changes, the Budget Proposal also took into account certain requests from budget beneficiaries, which mostly related to the internal restructuring of planned funds within their allocations.

Planned tax revenues in 2016 amount to 1,440.6 million KM and are increased by about 129.7 million KM compared to the Budget for 2015. Non-tax revenues amount to 381.3 million KM and are also increased by about 47.3 million KM.

Funds based on proceeds from financial assets and borrowing are planned in the amount of 712 million KM, which represents an increase of 38 million KM compared to the Budget for 2015.

The structure of the expenditure side of the Budget reflects the implementation of measures of restrictive public spending, which is one of the priorities of economic policy in the coming years. The fiscal policy of the Government of the Federation of BiH will also be oriented in 2016 towards activities that will contribute to the economic and social strengthening of the Federation of BiH, i.e., Bosnia and Herzegovina.

In 2016, total expenditures would amount to 1,517.7 million KM and would be higher by about 47.3 million KM compared to this year's. For debt repayments, about 977.1 million KM is planned, which is about 118.4 million KM more compared to the funds planned under this basis for 2015.

Among the current transfers to other levels of government and funds is 50 million KM intended for financing first employment and self-employment, which is an increase of 30 million KM compared to 2015.

The Federal Government today also adopted and forwarded to the FBiH Parliament the Proposal of the Law on the Execution of the FBiH Budget for 2016.

Also, the Financial Plan of the Health Insurance and Reinsurance Institute of FBiH for 2016, the consolidated revision of the Financial Plan of this Institute for 2015, and the Financial Plan of the Federal Pension and Disability Insurance Institute for 2016 were forwarded to the FBiH Parliament.