Government of FBiH, at yesterday’s session in Sarajevo, established and submitted the Draft Decision on Amendments to the Budget of the FBiH for 2016 to the Parliament of FBiH under urgent procedure. The budget amounts to 2,517,180,917 BAM, which is by 81.6 million BAM, or 3 % less than the current one.
Taking into account the data on the execution of the Budget of the FBiH for the period January – June 2016, and based on the projections of the Ministry of Finance of FBiH, revenues from corporate income tax of individuals and companies were increased by around 10.4 million BAM. Return on annuities from end users for debt repayment also increased by about 35.4 million BAM. Also, on the individual items of revenue are planned reductions, primarily in the economic codes of fees and taxes and income from public services, by 7.6 million BAM. Taking this into account, non-tax revenues were increased in the total amount of 27.2 million BAM.
The structure of the expenditure side on all items is a reflection of the implementation of restrictive public spending of the Government of the FBiH, which represents one of the priorities of economic policy in the following years. The fiscal policy of the Government of the FBiH in 2016 is focused on activities that will contribute to economic and social strengthening of the FBiH and BiH. In this context is the continuation of tough austerity measures in all areas of public spending.
With the proposed decision on amendments to the Budget of FBiH for 2016 were increased current transfers and other current expenditures in the amount of approximately 4 million BAM. The most significant changes are related to an increase of 5 million BAM of funds for protection and rescue from natural and other disasters, and an additional 2.1 million BAM for settling of obligations to the primary agricultural production from 2014.
It should be noted that on the position of the gross salaries and allowances and contributions, the amount of planned funds was reduced for around 10.3 million BAM. The main reasons for the reduction is the moratorium on recruitment that is conducted by the Government of the FBiH, as well as document on Politics on limiting public spending on salaries and benefits. Expenditure on interest was reduced by 3 million BAM, and funds for co-financing of projects through the foundation ODRAZ were reduced by 2 million BAM.
Capital transfers were decreased by about 3.3 million BAM, expenditures for purchase of fixed assets by about 4.3 million BAM, while expenditures for financial assets were decreased by 2.5 million BAM. Expenditures for repayment of debts were reduced by about 6o million BAM.
The Government of FBiH submitted the Proposal on amendments to the Law on Execution of the Budget of FBiH for 2016 to the Parliament of FBiH as well.
(Source: klix.ba)
