FBiH Government determines budget for 2025 in the amount of 8.24 billion KM

(Patria) - The Government of the Federation of Bosnia and Herzegovina, at today's session in Sarajevo, upon the proposal of the Federal Ministry of Finance, determined the Draft Budget of the Federation of BiH for 2025 in the amount of 8,248,547,700 KM, which is being sent to the FBiH Parliament under an urgent procedure.

Total revenues, receipts, and deferred items in this year's budget proposal represent an increase of 773.7 million KM or slightly more than 10 percent compared to the Budget of the Federation of BiH for 2024.

As stated in the explanation for the urgent procedure, the actions of the Government of the Federation of BiH, during the planning and preparation of this year's budget, are aimed at financing expenditures and outlays based on legal grounds (debt servicing, salaries, benefits and contributions, pensions, transfers for the veteran population, social categories, and the health sector), as well as maintaining the long-term stability and liquidity of the Budget of the Federation of BiH.

Following the above, and with the aim of maintaining the continuity of the budget process in the Federation of BiH, the urgent preparation of the Budget of the Federation of BiH for 2025 has been initiated, all for the purpose of implementing defined programs and measures intended to support the domestic economy and agriculture, the health sector, the most socially vulnerable categories of the population, and strengthening citizens' standards.

The most significant allocations relate to the economy, social protection, security, infrastructure, and social development.

As explained by the Federal Ministry of Finance, this budget proposal, among other things, continues the practice of supporting cantons through financial assistance to cantonal budgets for the implementation of structural reforms, amounting to 200 million KM intended to strengthen cantonal capacities. This investment enables more efficient reform implementation, improvement of public services, and increased fiscal stability of cantonal budgets.

Today's conclusion specifies that the Government of the Federation of BiH will oblige the cantons to use 10 percent of the allocated funds for the improvement of healthcare services per canton.

Furthermore, the Draft Budget provides for financial assistance of 50 million KM to cities and municipalities for flood damage repair. This allocation demonstrates the responsible approach of the Government of the Federation of BiH towards municipalities and cities affected by natural disasters. The planned funds will enable faster infrastructure reconstruction and the return of normal life for citizens.

Subsidies for small businesses in the amount of 100 million KM are intended to help the economy after the adoption of the Decision of the Government of the Federation of BiH, according to which the minimum wage will be 1,000 KM. The Government of the Federation of BiH has foreseen a subsidy program from the Budget of the Federation of BiH, where it is planned that subsidies for contributions will be paid to small businesses in order to preserve jobs that may be threatened due to the increase in the minimum wage in the Federation of BiH.

The current transfer to the Health Insurance and Reinsurance Institute of FBiH has been increased by 20 million KM compared to the previous year, clearly demonstrating the commitment to strengthening the healthcare system. This growth enables better provision of healthcare services for citizens, especially in the area of reinsurance and coverage of expensive medical treatments.

A transfer from the Budget of the Federation of BiH in the amount of 77 million KM is planned for the Federal Institute of Insurance and Reinsurance, of which 70 million KM is for the programs of the Federal Solidarity Fund, which is the largest allocation to date.

In addition to the above, a new transfer for clinical centers in the Federation of BiH in the amount of 45 million KM is planned. These funds confirm the commitment to improving healthcare through contributions to equipment modernization and enhancing the quality of healthcare services at the secondary and tertiary levels.

Furthermore, as a result of the increase in the minimum wage to 1,000 KM in this year's Draft Budget compared to last year, an increase in transfers for the implementation of the Law on Foster Parents by 10 million KM is foreseen, while allocations for child benefits are increased by 33 million KM. This is about strengthening support for vulnerable categories of society and ensuring equality and accessibility of rights throughout the Federation of BiH.

Current transfers to individuals are planned in the amount of 4,741.3 million KM, which is 429.3 million KM more than in 2024. The most significant increase relates to transfers within the Federal Pension and Disability Insurance Institute, considering the expected rate of regular pension adjustments.

An increase of more than 332 million KM for pension payments based on various legal grounds indicates continuous support for pensioners and ensures the stability of their income.

The allocated funds enable regular pension adjustments, which further contribute to improving the living standards of the elderly. Assistance to pensioners for medical treatment through associations in the amount of 2.6 million KM is also allocated. An increase of 1.6 million KM for this item confirms care for pensioners' health and ensures easier access to necessary medical services.

Furthermore, an increase of 9.8 million KM for disability benefits confirms the commitment to supporting the veteran and disabled population. It additionally ensures stable income for persons with war and military disabilities, improving their living standards.

Capital transfers to individuals in the amount of 2.5 million KM, foreseen for the purchase of cars for disabled persons through the Budget of the Federation of BiH for 2025, represent a continuation of support for one of the most vulnerable categories of society.

The planned transfer of 26 million KM for civilian war victims ensures continued support for those who have suffered the horrors of war. An increase in transfers for persons with disabilities of 40 million KM represents a significant step towards supporting persons with disabilities. The allocated funds enable better access to necessary services and additional assistance to improve quality of life.

Maintaining a stable amount of 45 million KM for displaced persons and returnees ensures continued assistance to this vulnerable group. The planned funds enable the integration of returnees and support for sustainable return to their pre-war locations.

Subsidies to private companies and entrepreneurs are largely provided through incentives for agriculture in the amount of 183 million KM, which represents an increase of eight million KM compared to last year.

Considering that agriculture in the Federation of BiH is experiencing significant progress thanks to strategic measures and programs of the relevant ministry through support for farmers, increased investments, and infrastructure improvements, the agricultural sector is strengthening its role as one of the foundations of economic development and food security in the Federation of BiH.

Funds in the amount of 36 million KM planned for the construction, adaptation, and reconstruction of sports infrastructure are certainly significant support for the further construction and adaptation of sports infrastructure, which is of key importance for the development of sports in BiH. In addition to the above, the construction, adaptation, and reconstruction of cultural institutions in the amount of 15 million KM are key to improving cultural infrastructure in BiH, thereby directly contributing to the preservation and enhancement of cultural heritage, as well as fostering creativity and cultural development.

Investment in the Employment Project in the amount of 28 million KM, through the Agreement with the International Bank for Reconstruction and Development (IBRD), provides a significant boost to the labor market. The funds support the creation of new jobs, reduction of unemployment, and improvement of the workforce's skills.

Capital transfers to public enterprises in this year's Draft Budget of the Federation of BiH are planned in the amount of 265.2 million KM. The most significant planned transfers within this economic code are for the construction of highways, expressways, main roads, and other roads in the amount of 150 million KM, then for the improvement of air traffic of FBiH 12 million KM for the continuation of the construction of Bihać Airport, and the Project for the reconstruction of the main heating pipeline of the city of Tuzla in the amount of five million KM, while the capital transfer to public enterprises for road infrastructure is 89 million KM, intended for JP Autoceste FBiH and JP Ceste FBiH for the continuation of the implementation of priority projects.

The Government of the Federation of BiH today also determined the Draft Law on the Execution of the FBiH Budget for 2025, which is being sent to the parliamentary procedure under an urgent procedure.
At today's session, the Government of the Federation of BiH adopted by conclusion the Financial Plan of the Health Insurance and Reinsurance Institute of FBiH for 2025 and the Decision on the method of executing the Financial Plan of this institute for 2025. It also determined the Draft Decision on giving consent to the Financial Plan and the Decision on the method of executing the Financial Plan of this institute, which it sent to the FBiH Parliament.

Furthermore, by conclusion, the Financial Plan of the Federal Employment Bureau for 2025 and the projection of the plan for 2026 and 2027, and the Decision on the execution of the Financial Plan of this bureau for 2025 were adopted.

The Draft Decision on giving consent to the Financial Plan of the Federal Employment Bureau for 2025 and the projection of the plan for 2026 and 2027, and the Decision on the execution of the Financial Plan of this bureau for 2025, which it sent to the FBiH Parliament, has also been determined.