Another key economic issue in Bosnia and Herzegovina has become hostage to political disagreements after the BiH Fiscal Council failed to adopt the Global Fiscal Framework (GFF) for the period 2026–2028, a document crucial for preparing entity and state budgets.
The goal of the Fiscal Council session was to fulfill the necessary prerequisites for the adoption of the budgets at both the entity and state levels. However, the telephone session failed due to a lack of quorum, as the Prime Minister of the Federation of BiH, Nermin Nikšić, did not respond to the call.
Chairperson of the Council of Ministers of BiH, Borjana Krišto, accused Nikšić of directly blocking the process.
“The Prime Minister of the Federation of BiH directly prevented the adoption of the decision of the Fiscal Council within the prescribed deadline, thereby blocking the further budget process at the level of BiH institutions. This has direct and serious consequences for the functioning of state institutions,” Krišto said.
Nikšić later explained his decision, stating that he would not participate in the work of the Fiscal Council until the Constitutional Court of BiH rules on the legality of the Government of Republika Srpska.
“As soon as the Constitutional Court of BiH makes a decision on the legality of the Government of the RS, I am ready to continue actively participating in the work of the Fiscal Council without delay,” Nikšić said.
The move sparked sharp reactions from state officials. Minister of Finance and Treasury of BiH, Srđan Amidžić, accused Nikšić of putting politics ahead of the interests of workers.
“For Nikšić, the Government of the RS and the snow in Sarajevo are more important than the budget and salaries of employees in BiH institutions. This statement did not come from Banja Luka, but from the seat of the FBiH Government,” Amidžić said.
Those most affected by the delay could be employees in BiH institutions and holders of judicial offices, who are guaranteed salary increases under the collective agreement. Minister of Justice of BiH, Davor Bunoza, warned of legal and financial consequences.
“If we do not adopt the budget, we are threatened with lawsuits and additional costs. It is an election campaign and I see no reason to wait for the decision of the Constitutional Court,” Bunoza said.
FBiH MP Admir Čavalić also warned that without the Global Fiscal Framework, the adoption of the state budget is highly uncertain.
“Without this document, it is difficult to talk about the adoption of the state budget, which would prevent development projects and improvements to the status of budget beneficiaries,” Čavalić said.
Economic analyst Igor Gavran believes the problem goes deeper and reflects long-standing dysfunction in the work of the Fiscal Council.
“We cannot be satisfied with the work of the Fiscal Council even when it holds regular sessions. The practice has been that everything the RS wants must be adopted, and what does not suit them is blocked. The FBiH Government should have reacted much earlier,” Gavran said.
Chairperson Krišto also warned that funding for the upcoming elections could be brought into question if the budget process remains blocked.
At the moment, there is no solution in sight. The Constitutional Court of BiH has still not announced when it will decide on the appeal concerning the legality of the Government of Republika Srpska, leaving yet another crucial economic process in the country stalled by political disputes.
