FBiH Government: Over 1.7 Million BAM for Improving the Status of the Veteran Population

(Patria) - The Government of the Federation of Bosnia and Herzegovina today, at a telephone session, upon the proposal of the Federal Ministry for Veterans and Disabled Veterans of the Defense-Liberation War, adopted a Decision adopting the Program for the Use of Funds allocated by the FBiH Budget for 2026 for the Program for Improving the Socio-Economic Status of Members of the Veteran Population and Preserving the Achievements of the Defense-Liberation War, for this Ministry within current transfers to non-profit organizations, in the amount of 1,720,000 BAM.

The Federal Ministry for Veterans and Disabled Veterans of the Defense-Liberation War will submit reports on the funds spent to the Federal Ministry of Finance and the Government of FBiH in accordance with the Law on the Execution of the FBiH Budget for 2026 and the Program from this decision.

A portion of the funds is allocated for providing support and financial assistance to the Foundation for Providing Legal Assistance to Members of the Defender Population in Sarajevo and the Endowment for Providing Legal Assistance to Members of the Defender Population in Mostar.

The Foundation is granted funds in the amount of 555,000 BAM, and the Endowment 285,000 BAM.

These funds will be used in the amount of 90 percent for co-financing legal assistance to members of the defender population in accordance with the rulebooks on criteria for allocating funds for providing legal assistance to members of the defender population adopted by the Management Board of the Foundation and the Management Council of the Endowment, and 10 percent of the approved amount for co-financing the current expenses of the Foundation and the Endowment.

In accordance with the Program adopted today, transfers are also determined for the Association of Camp Inmates of BiH in the amount of 120,000 BAM, the Croatian Association of Camp Inmates of the Homeland War in BiH 70,000 BAM, and IDA - Research and Documentary Activities and Protection of Victims and Witnesses of Genocide 90,000 BAM. The distribution of these funds will be carried out according to general and specific criteria.

A portion of the funds in the amount of 600,000 BAM is allocated for support to the Foundation for Housing of Disabled Veterans and the Veteran Population. These funds will be paid into the account of the Foundation for Providing Assistance in Resolving Housing Issues for Members of Veteran Categories, based on the adopted Program of Work of the Foundation for 2026.

Guidelines for Economic and Fiscal Policy

The Government of the Federation of Bosnia and Herzegovina, upon the proposal of the Federal Ministry of Finance, adopted and issued the document "Guidelines for the Economic and Fiscal Policy of the Federation of BiH for the Period 2027 - 2029."

The document Guidelines for Economic and Fiscal Policy for the Period 2027 - 2029 was prepared based on the Law on Budgets in the Federation of BiH, which defines the content of the document.

The Guidelines for the Economic and Fiscal Policy of the Federation of BiH contain the strategic goals of the economic and fiscal policy of the Federation and harmonized priorities of expenditures and outlays, including priority structural reforms, as well as the basic macroeconomic indicators of the Federation and the basic indicators of the economic and fiscal policy of the Federation.

It also contains assumptions for social and economic development for the budget year and the following two years, an estimate of budget revenues and receipts, a target fiscal position, and a harmonized level of total target expenditures and outlays, which reflect the aforementioned priorities of expenditures and outlays.

The Guidelines also include projected changes in public debt and a public debt management strategy.

This document represents a strategic starting point for financial management in the Federation of BiH. In addition to specifying plans for the next budget year, it offers clearer guidelines to lower administrative units so that they can direct their resources and plans as efficiently as possible towards key policies.

Furthermore, the Guidelines serve as a framework for ensuring long-term fiscal sustainability and provide the macroeconomic context necessary for stable planning of investment and development cycles.

Through this document, the Government of the Federation of BiH defines the priorities of the expenditure side of the budget, taking into account social sensitivity and the need to strengthen economic competitiveness.

The document Guidelines for Economic and Fiscal Policy for the Period 2027 – 2029 is harmonized with the strategic documents of the Government of the Federation of BiH.

It is emphasized that European integration is a strategic commitment of Bosnia and Herzegovina and a common interest of its citizens. This process brings opportunities for accelerated economic growth, strengthening the rule of law, and a higher standard of living.

The opening of accession negotiations and the preparation of the negotiating framework mark the beginning of the most demanding phase, which implies the transformation of the entire society.

The basic strategic document that determines the direction of the economic and fiscal policy of the Federation of BiH in the medium term is the Development Strategy of the Federation of BiH 2021–2027.

This strategy also reflects the priorities of Bosnia and Herzegovina established in the process of European integration, including the Economic and Investment Plan for the Western Balkans, the Green Agenda for the Western Balkans and the EU Digital Strategy, as well as the globally accepted sustainable development goals from the 2030 Agenda.

In line with European Union policies, the economic policy of the Federation of BiH in the medium term will be focused on strengthening sustainable and inclusive economic growth, improving the living standard of citizens, and reducing social and economic inequalities.

It was also highlighted that the Federation of BiH continues to implement policies aimed at strengthening the competitiveness of the economy, digital transformation, and support for the green transition, with a focus on improving the business environment, supporting investments, and developing small and medium-sized enterprises.

Special attention will be paid to investments in education, research, innovation, and human capital development, with the aim of creating a sustainable foundation for long-term economic growth and strengthening the competitiveness of the economy.

Thanks to responsible management of public finances and maintaining a relatively low level of public debt, the Budget of the Federation of BiH is characterized by a satisfactory level of liquidity, which enables the timely execution of obligations established by laws and other regulations.

The key priorities of the Government of the Federation of BiH in the upcoming medium-term period relate to improving the business environment, encouraging investments, and implementing infrastructure projects.

Priority activities will be supported through the allocation of significant funds for financing the construction of highways and expressways, improving rail and air traffic, as well as developing energy infrastructure.

At the same time, activities will continue on rationalizing public administration costs, strengthening fiscal discipline, and controlling budget spending, in order to direct available funds to a greater extent towards development and infrastructure projects.