Canton Sarajevo Government Determines Draft Budget of CS for 2026 in the Amount of 1.9 Billion KM

(Patria) - The proposed Budget amounts to 1.9 billion KM and is designed with the aim of preserving the fiscal stability of Canton Sarajevo, continuing the implementation of capital projects, orderly execution of social obligations, and stable financing of cantonal functions.

“The budget for 2026 reflects our intention to preserve the economic stability of the Canton, with a strong development component. The key priority was to establish a balance between social sensitivity and the continuation of capital infrastructure investments. We are continuing with kindergarten subsidies, ensuring free public transport, and reconstructing and equipping schools. We are particularly highlighting the construction of a new elementary school in Stup, the Ars Aevi Museum of Contemporary Art, the completion of the University Library, and the renovation of the National Theatre facade. The year 2026 will be marked by major completions, but also new developmental beginnings. Our focus remains on the transformation of transport infrastructure, the commissioning of the tram line to Hrasnica, and the opening of the Kobilja Glava tunnel. With investments in the utility sector, we are transforming Sarajevo into a metropolis that develops according to the needs of all its citizens. This budget is a tool by which we ensure quality public services, support for the economy, and security for everyone,” stated the Prime Minister of Canton Sarajevo, Nihad Uk.

As explained, the largest share of the Budget's revenue side consists of tax revenues, while the Budget's revenue structure is based on stable sources of financing, primarily revenues from indirect taxes and income tax. In addition, the Budget includes non-tax revenues and current transfers and donations.

On the expenditure side of the Budget, special focus is placed on capital projects and investments, as well as on ensuring continuity in the financing of public functions and services. Significant funds are also planned for servicing internal and external debt, while simultaneously strengthening fiscal discipline and orderly settlement of obligations.

The budget proposal also envisages an increase in the base for calculating salaries of public sector employees by five percent, thus continuing the policy of preserving the living standard of employees, while respecting budgetary possibilities.

“The focus is on reducing previously undertaken obligations, stable debt servicing, and preserving fiscal balance, while simultaneously maintaining the Canton's investment activity,” said the Minister of Finance, Afan Kalamujić.

The KS Assembly will consider the budget proposal at a session scheduled for December 29, 2025.