The House of Representatives of the FBiH Parliament adopted the budget proposal in the amount of almost 8.9 billion KM, which is more than 650 million more than the previous year. In order for it to enter into force, it also needs the support of delegates in the House of Peoples.
Non-war disabled
The budget is for the most part of a social nature, according to explanations from the FBiH Government, aimed at fulfilling obligations to citizens and institutions, but what is of particular concern are the planned debts, because the budget planned with the amount of almost 8.9 billion FBiH marks needs to be serviced with 6.51 billion expected revenues and 2.3 billion planned debts and with the repayment of 1.3 billion KM of the previous external debt.
The largest part of the budget, close to 2.5 billion marks, is aimed at social protection. Expenditures for disability benefits will amount to 333 million KM, and for non-war disabled persons 336 million KM, after both transfers have been increased by 56 million KM each.
An amount of 80 million KM is planned for the implementation of the Law on the Rights of Demobilized Veterans and Their Family Members. And, 228 million marks are planned for the implementation of the Law on Support for Families with Children, while 16 million KM is planned for a one-time financial aid for a newborn child.
After the proposed amendment, at the session of the House of Representatives, the funds for the Solidarity Fund for the treatment of cancer patients were increased from the planned 80 to 100 million KM. The largest budget in the history of the FBiH was increased due to the announced adjustment of pensions from January 1, i.e. July 1, and the increase of pensions by 17 percent.
That is why the planned funds for the payment of pensions have been increased to a total of 4.42 billion marks.
– This is a budget that, in such a bizarre way, was made only to maintain the system. Both social benefits and pensions are at great risk, because it’s not like our productivity is growing, it’s not like our economy is booming, so there will be someone to pay back loans and earn for pensions and social benefits. May God help everyone – says economist Svetlana Cenić, adding that she does not see money for the economy or research and development in the FBiH budget items.
Unsustainable condition
This is a social budget, without the economy in the background, and you cannot spend indefinitely what you do not have, warns Muharem Karamujić, professor of the Faculty of Economics at the University of Sarajevo.
– No one is saying that pensions should not be increased, because pensions are small and it is difficult for pensioners, but this is not sustainable. We borrow in order to spend, and, just like in the household, someone has to pay it back. The only way to increase household welfare is to earn more. That is why this is a purely social measure and a pre-election move. We have a lot of pensioners, they will understand that this government protects them, and no one thinks what will happen later and how we will get it back – says Karamujić.
1.5 billion KM is already missing for the payment of pensions
Karamujić adds that 1.5 billion KM is already missing for the payment of pensions from contribution funds, and the number of pensioners is growing every year, reports Avaz.
– The government has no economic measures to increase economic productivity and GDP and to enable us all to live better. We have incompetents leading and manipulating us. They had three years and did nothing, except increase taxes and reduce economic capacity through non-working Sundays and various nonsense. We didn’t have any measures that would give an economic result, everything they gave is wrong and to cover it all they are now in debt to us. Imagine if we invested those 2.3 billion in incentive measures to attract highly productive economic activities from outside, our diaspora and others. We would make a boom. This is how it will be used for consumption, most of the consumption is imports, so basically we borrow money, pay interest, and the money goes out – Professor Karamujić points out.
