Overall revenues, receipts and appropriations 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 Bosnia and Herzegovina 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 drafting of this year’s budget, are aimed at financing expenses and expenditures that are based on a legal basis (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 Bosnia and Herzegovina. Following the above, and with the aim of maintaining the continuity of the budget process in the Federation of Bosnia and Herzegovina, the urgent preparation of the Budget of the Federation of Bosnia and Herzegovina for 2025 was started, all for the purpose of implementing defined programs and measures intended to support the domestic economy and agriculture, then the health sector, the most socially vulnerable population categories 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, continued the practice of supporting cantons through financial assistance to cantonal budgets for the implementation of structural reforms of 200 million KM intended to strengthen cantonal capacities. This investment enables more efficient implementation of reforms, improvement of public services and increase in 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 health services in the cantons.
Also, the Budget proposal foresees financial assistance of 50 million KM to cities and municipalities for the rehabilitation of flood damage. This allocation shows the responsible approach of the Government of the Federation of Bosnia and Herzegovina towards municipalities and cities affected by natural disasters. The planned funds will enable a faster reconstruction of the infrastructure and the return of normal life to the citizens.
The subsidization of small business entities in the amount of 100 million KM is intended to help the economy after the adoption of the Decision of the Government of the Federation of Bosnia and Herzegovina, according to which the lowest salary will be 1,000 KM. The Government of the Federation of Bosnia and Herzegovina has foreseen a subsidy program from the Budget of the Federation of Bosnia and Herzegovina, where it is foreseen that subsidies for contributions will be paid to small business entities, in order to save jobs that are possibly threatened due to the increase of the minimum wage in the Federation of Bosnia and Herzegovina.
The current transfer to the FBiH Institute of Health Insurance and Reinsurance has increased by 20 million KM compared to the previous year and clearly shows commitment to strengthening the health system. This makes it possible to better ensure health services for citizens, especially in the area of reinsurance and coverage of expensive medical treatments. Planning transfer from the Budget of the Federation of Bosnia and Herzegovina in the amount of 77 million KM to the Federal Institute of Insurance and Reinsurance, of which 70 million KM for the programs of the Federal Solidarity Fund, which is the largest allocation so far.
In addition to the above, a new transfer is planned for clinical centers in the Federation of BiH in the amount of 45 million KM. These funds confirm the commitment to the improvement of healthcare through a contribution to the modernization of equipment and the improvement of the quality of healthcare services at the secondary and tertiary level.
Furthermore, as a result of the increase in the minimum wage to 1,000 KM in the Budget Proposal for this year compared to last year, an increase in transfers for the implementation of the Law on Caregiving Parents by 10 million KM is foreseen, while allocations for child allowance are increased by 33 million KM. It is about strengthening support for vulnerable categories of society, and ensuring equality and access to rights in the entire territory of the Federation of Bosnia and Herzegovina.
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 refers to transfers within the Federal Institute for Pension and Disability Insurance, given the expected rate of regular adjustment of pensions.
The increase of more than 332 million KM for the payment of pensions on various legal grounds indicates continuous support for pensioners and ensuring the stability of their incomes. The allocated funds enable regular adjustment of pensions, which additionally contributes to improving the living standards of the elderly. Aid to pensioners for treatment through the association is also allocated in the amount of 2.6 million KM. The increase of 1.6 million KM for this item confirms the care of pensioners’ health and ensures easier access to the necessary medical services.
Also, the increase of 9.8 million KM for disability benefits confirms the commitment to support the veteran and disabled population. Additionally, it ensures stable income for people with war and military disabilities, improving their standard of living. Capital transfers to individuals in the amount of 2.5 million KM, provided for the purchase of cars for the disabled through the Budget of the Federation of Bosnia and Herzegovina for the year 2025, represent the continuation of support for one of the most sensitive categories of society.
The planned transfer of 26 million KM for civilian victims of war ensures the continuation of support for those who suffered the horrors of war. The 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 help to improve the quality of life.
Keeping 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 a sustainable return to their pre-war locations.
Subsidies to private companies and entrepreneurs are mostly provided through incentives for agriculture in the amount of 183 million KM, which represents an increase of eight million KM compared to last year. Bearing in mind that agriculture in the Federation of Bosnia and Herzegovina is making significant progress thanks to the strategic measures and programs of the relevant ministry through support to farmers, increased investments and improvement of infrastructure, the agricultural sector is strengthening its role as one of the foundations of economic development and food security in the Federation of Bosnia and Herzegovina.
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 Bosnia and Herzegovina. In addition to the above, the construction, adaptation and reconstruction of cultural institutions in the amount of 15 million KM are key to the improvement of the cultural infrastructure in BiH, which directly contributes to the preservation and improvement of cultural heritage, as well as to the stimulation of 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 workforce skills.
Capital transfers to public enterprises in this year’s Budget Proposal of the Federation of Bosnia and Herzegovina 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, highways and other roads in the amount of 150 million KM, then for the improvement of air traffic in the FBiH 12 million KM for the continuation of the construction of the Bihać Airport, and the project for the reconstruction of the main hot water pipeline in the city of Tuzla in the amount of five million KM, while the capital transfer to public companies for road infrastructure is 89 million KM, intended for JP Autoceste FBiH and JP Roads FBiH for the continuation of the implementation of priority projects.
Today, the Government of the Federation of Bosnia and Herzegovina approved the Bill on the implementation of the Budget of the Federation of Bosnia and Herzegovina for 2025, which is referred to the parliamentary procedure as a matter of urgency.
At today’s session, the Government of the Federation of Bosnia and Herzegovina accepted the Financial Plan of the Institute of Health Insurance and Reinsurance of FBiH for the year 2025 and the Decision on the manner of execution of the Financial Plan of this institute for the year 2025. It also approved the Proposal for the Decision on giving consent to the Financial Plan and the Decision on the manner of execution of the Financial Plan of this institution, which was sent to the Parliament of FBiH.
Also, the conclusion accepted the Financial Plan of the Federal Employment Agency for 2025 and the assessment of the plan for 2026 and 2027 and the Decision on the execution of the Financial Plan of this agency for 2025. The Proposal of the Decision on giving consent to the Financial Plan of the Federal Employment Service for 2025 and the assessment of the plan for 2026 and 2027 and the Decision on the execution of the Financial Plan of this service for 2025, which was sent to the Parliament of FBiH, was also determined.
(Vijesti.ba)
