The budget of the Federation of Bosnia and Herzegovina for the year 2026 was adopted tonight by the majority of votes at the extraordinary session of the House of Peoples of the Federal Parliament.
The FBiH government proposed a budget in the total amount of 8,898,279,146 KM, which is 649 million KM higher than in 2025. At the same time, the Government explained that the main goal is sustainable management of public finances with responsible expenditure control and provision of 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, the Government also stated.
According to the statements of Deputy Prime Minister and Federal Minister of Finance Tonij Kraljević, as well as Prime Minister Nermin Nikšić, the largest budget of the Federation of BiH so far has been proposed for 2026.
– The main focus of the budget is the MIO/PIO section in light of the expected adoption of the law on MIO/PIO, i.e. the double adjustment of pensions, from January 1st, and from July 1st. Expenditures for MIE/PIO increased to four billion and 422 million KM – explained Minister Kraljević and Prime Minister Nikšić.
Kraljević added that the budget foresees strong support for lower levels of government – for cantons, municipalities, cities, and additionally for underdeveloped local communities, and 100 million KM is earmarked for the Solidarity Fund, while the youth housing project continues with 25 million KM through the state-owned Union Bank.
When it comes to the money earmarked for the Solidarity Fund, three days ago at the session of the House of Representatives, the amount was increased from the originally planned 80 to 100 million KM, which Alija Aljović from the Federal Ministry of Finance confirmed today while explaining the budget to the House of People’s delegates.
In the postponed budget of the Federation, incentives for agriculture were increased to 190 million KM, the transfer to the Ministry of Veterans’ Affairs increased by 56 million KM, and by 138 million KM the transfer for non-war disabled, civilian victims of war, child allowance and compensation for caring parents, Aljović also said. According to him, for obligations in the field of pension and disability insurance, the increase is 541 million. Four million KM is planned for the commissioning of helicopters for the Federal Police Administration, and three million KM for the Ministry of Justice for software for registering business entities.
The budget planned and increased capital transfers for road infrastructure and additional money for education, science, culture and sports, asserted Aljović, as well as federal finance minister Toni Kraljević.
The revenue side of the budget is planned cautiously, conservatively, which also applies to debts, these officials asserted, explaining to the House of People the details of the planned federal budget along with many other elements.
Kraljević previously pointed out that capital projects also play a significant role, 249 million KM for the construction of highways, expressways and main roads, ten million KM for the improvement of air traffic, five million KM for the airport in Bihać, six million KM for recapitalization of oil terminals in FBiH. Allocations are also planned for the recapitalization of the Banovići mine as a strategic resource.
According to the words of the Federal Minister of Finance, current capital transfers from the Federal Ministry of Environment and Tourism have also been increased.
– We continue to support the real economic sector from the division of the Ministry of Crafts and Entrepreneurship, the development of entrepreneurial infrastructure based on the Law on the Development of Entrepreneurial Infrastructure where the applicants are local self-government units. Likewise from the Ministry of Spatial Planning, where we have several items – from energy efficiency projects, landslide rehabilitation, national monuments. Then from the division of education and science where there are additional funds for the improvement of scientific and research work, support for academies, from the division of culture and sports 30 million for the construction, adaptation and reconstruction of sports infrastructure facilities, ten million for the reconstruction and construction of facilities of cultural institutions – said Kraljević, adding that the increased items are also for cultural events of special importance for the Federation of Bosnia and Herzegovina.
According to him, in the social division, changes to the law on MIO/PIO correlate with the increase in the budget item for civilian victims of war and non-war disabled (an additional 56 million KM) and for veterans’ transfers (an additional 56 million KM), which makes a total of 112 million KM additional allocations.
– Debt repayment, including interest, is planned in the amount of one billion and 309 million KM – emphasized Kraljević, summarizing the most important features of the Budget Proposal of the Federation of Bosnia and Herzegovina for 2026.
Tonight, the House of Peoples also adopted the accompanying act, the Law on Budget Execution.
