At today’s session, the Government of the Federation of Bosnia and Herzegovina adopted the budget document of the Federation of Bosnia and Herzegovina in the amount of 8.9 billion KM.
This document should be presented to representatives in the Parliament of the Federation of Bosnia and Herzegovina on January 15.
Total budget expenditures for 2026 amount to 7.70 billion KM. According to the Federal Deputy Prime Minister and Minister of Finance Toni Kraljević, the largest part of the expenditure relates to current transfers and other current expenditures, which amount to 6.29 billion KM, which reflects the scope of the obligations of the Federation of Bosnia and Herzegovina towards citizens, institutions and other levels of government.
Due to the announced increase in pensions by approximately 17 percent, expenditures for the Federal Institute of Pensioners are planned in the amount of 4,422,251,070 KM. Capital transfers amount to 470.7 million KM, and interest expenses based on debt servicing are planned in the amount of one billion and 309 million KM.
Kraljević pointed out that the budget of the Federation of Bosnia and Herzegovina for 2026 was prepared in conditions of severe economic and fiscal challenges, with the need to preserve fiscal stability and ensure regular financing of the constitutional and legal competences of the Federation of Bosnia and Herzegovina. During its preparation, current macroeconomic projections, the medium-term fiscal framework, as well as the strategic goals of economic and fiscal policy were taken into account.
– The basic goal of the budget of the Federation of Bosnia and Herzegovina for 2026 is the sustainable management of public finances, with responsible control of expenditures and ensuring stable sources of financing. The budget is aimed at fulfilling obligations towards citizens and institutions, with a special focus on social protection, the health and pension system, a stable business environment, and preserving the functionality of public services. Income and expenditure planning is based on realistic assumptions and the current legal framework, with an emphasis on the need for fiscal discipline and rationalization of current consumption – said Kraljević.
He adds that at the same time, the budget of the Federation of BiH for 2026 tries to maintain the development component through support for priority projects and measures of importance for economic growth and employment.
The budget of the Federation of Bosnia and Herzegovina for 2026 was conceived as an instrument for strengthening the connection between planned financial resources and concrete results that are to be achieved. The structure of the budget enables directing public spending according to priority areas, with an emphasized need for measurable effects, efficiency and responsibility of budget users. In this context, special emphasis is placed on the programmatic approach to budget planning and execution, which represents the basis for more transparent management of public funds and clearer monitoring of the realization of goals and results.
An amount of 80,000,000 KM is planned for the implementation of the Law on the Rights of Demobilized Veterans and Their Family Members, which ensures the continuation of the rights guaranteed by law, improves the social position of this category and confirms institutional care for the veteran population.
As part of the implementation of the Law on Support for Families with Children in the Federation of BiH, the Budget for 2026 has planned funds in the amount of 228,000,000 KM, which are aimed at strengthening the pronatal policy, reducing the risk of poverty of families with children and ensuring equal access to social rights in the territory of the Federation of BiH. In addition, funds in the amount of 16,000,000 KM are planned for a one-time financial aid for a newborn child, which provides direct financial support to families in the earliest stages of parenthood.
As part of the implementation of the Law on protection against domestic violence, funds in the amount of 1,100,000 KM are planned, intended for strengthening preventive and protective measures, as well as supporting the work of specialized organizations that provide assistance to victims of violence.
Subsidies are planned for public enterprises aimed at strengthening their operational stability and improving services of public interest. Funds in the amount of 3,000,000 KM are planned for the implementation of a fair transition and mitigation of disruptions in the market, which provides support to public companies in adapting to changes in the energy and industrial sectors, while at the same time preserving jobs and the social security of employees.
A significant part of the funds refers to the transfer to the Railways of the Federation of Bosnia and Herzegovina in the amount of 24,000,000 KM, which ensures the continuity of railway traffic, maintenance of infrastructure and improvement of safety and quality of services in this strategically important transport sector.
Additionally, funds in the amount of 10,000,000 KM are planned for the settlement of obligations under the Law on Financial Consolidation of JP Željeznica FBiH. An amount of 10,000,000 KM is planned for the improvement of air traffic, with the aim of strengthening the connection of FBiH with international destinations, supporting development and encouraging tourism and economic activities.
Within the total subsidies to private companies and entrepreneurs, an amount of 23,227,134 KM is planned, which ensures the implementation of various economic policy measures aimed at stabilizing business and strengthening the economy’s resilience.
The most significant individual amount refers to incentives for agriculture, for which allocations have been increased by 7,000,000 KM and amount to 190,000,000 KM, which ensures the continuity of support for primary agricultural production, rural development and food security.
A significant part of the funds refers to current transfers to the cantons, for which an amount of 200,000,000 KM is planned in the Budget, and which have the purpose of strengthening the fiscal stability of the cantonal budgets, ensuring balanced regional development, and supporting the financing of their competences.
Capital transfers to cities and municipalities are planned with 48,000,000 KM, enabling local communities to implement priority infrastructure projects.
KM 99,000,000 is earmarked for road infrastructure, which enables the continuation of modernization and expansion of roads, increasing safety and better connectivity between cities and municipalities.
The transfer for the construction of highways, expressways, highways and other roads in the amount of 150,000,000 KM represents a strategic step forward in the development of the transport network of the Federation, ensuring faster and safer traffic.
Today, the Government of the Federation of BiH established the Draft Law on the Execution of the Budget of the Federation of BiH for 2026, as well as the Draft Law on Amendments to the Law on Budgets of the Federation of BiH, which will be referred to the further parliamentary procedure in an urgent procedure, writes Factor.
