At the proposal of the Federal Ministry of Finance, the Government of the Federation of Bosnia and Herzegovina adopted the Draft Budget of the Federation of Bosnia and Herzegovina for 2026 at its session today, which is planned in the total amount of 8,898,279,146 KM.
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 expenditures relates to current transfers and other current expenditures, which amount to 6.29 billion KM, which reflects the scope of the Federation of BiH’s obligations to citizens, institutions and other levels of government.
Due to the announced increase in pensions by about 17 percent, expenditures for the Federal Institute of Pensions and Retirement Benefits are planned in the amount of 4,422,251,070 KM. Capital transfers amount to 470.7 million KM, and interest expenses on debt servicing are planned in the amount of 1 billion and 309 million KM.
Kraljević emphasized that the Budget of the Federation of Bosnia and Herzegovina for 2026 was prepared in conditions of pronounced economic and fiscal challenges, with the need to preserve fiscal stability and ensure regular financing of the constitutional and legal responsibilities of the Federation of BiH. When drafting it, current macroeconomic projections, the medium-term fiscal framework, as well as strategic goals of economic and fiscal policy were taken into account.
“The main goal of the Budget of the Federation of BiH for 2026 is 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, health and pension systems, a stable business environment, and preserving the functionality of public services. Planning of revenues and expenditures is based on realistic assumptions and the applicable legal framework, with an emphasis on the need for fiscal discipline and rationalization of current spending,” said Kraljević.
He added that at the same time, the Budget of the Federation of BiH for 2026 seeks to maintain the development component through support for priority projects and measures of importance for economic growth and employment.
The 2026 Budget of the Federation of BiH is designed as an instrument to strengthen the link between planned financial resources and the concrete results to be achieved. The budget structure enables the targeting of public spending towards priority areas, with an emphasis on the need for measurable effects, efficiency and accountability 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 implementation of goals and results.
