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Sarajevo Times > Blog > BUSINESS > Interview with the Minister of Finance of BiH
BUSINESSINTERVIEWS

Interview with the Minister of Finance of BiH

Published October 4, 2023
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The Minister of Finance of Bosnia and Herzegovina, Srđan Amidžić, announced in Dnevnik 2 of the BiH Radio Television (BHRT) that the ministry will propose to the Council of Ministers a smaller BiH budget for 2024 than it was in 2023.

I can tell you about my ministry that we will propose a smaller budget compared to the one approved in 2023, said Minister Amidžić.

“I see no reason to increase the budget when we can do some things in a more efficient way, and leave the excess money to the entities, cantons, and local communities to solve their problems, that is, the problems of citizens.

What about the toll money that is in the Indirect Taxation Authority?

When we talk about tax revenues collected by the Directorate for Indirect Taxation, they mostly come from citizens, and that’s why it’s time to return that money to the end users, that is, to them, said the minister.

“In terms of revenues, they are growing, but there remains a serious issue of the distribution of tolls. These are serious funds that are in the ITA, and we can use this example to show whether we are a serious country and whether we can function in this way.”

Minister Amidžić specifically spoke about the figures that are in the ITA, which were collected from tolls in both entities.

“What the citizens need to know is that at this moment we have deceived the people living in Bosnia and Herzegovina. The citizens of Bosnia and Herzegovina have set aside some funds and kilometers and kilometers of roads need to be built with that money. At this moment, the citizens of Bosnia and Herzegovina are paid for 15 km of highways that we are not building, then 50 km of main roads and we cannot agree on how to return it. And we cannot continue in this way. I understand the strong positions of both RS and FBiH.”

For BHRT, he said that the full amount of those funds is not in dispute.

“The whole amount is not in dispute. We need to deliver to the citizens what was paid, and leave the disputed small part for agreement later. There is also the question, perhaps, of criminal responsibility. Inflation last year was 14 percent, 20 million. inflation eats up every year only on those roads. You have companies (JP Autoceste and Autoputevi RS) that borrow in addition to the funds that are in the account of the ITA BiH. Do I have the right to ask the questions “Are we serious” or “Are we going to deceive the people who voted and who chose”.

The Law on the Courts of Bosnia and Herzegovina is a matter of political agreements

As for the Law on Courts of Bosnia and Herzegovina, Amidžić said that it is the result of political agreements and consultations.

“But what was already discussed when it comes to the Republika Srpska is a clearly defined position when we talk about the very priorities in relation to those political issues that are important, as for the RS, this is how it is perceived when it comes to the Federation of Bosnia and Herzegovina. Only on such an approach with mutual respect, a solution can be reached, among others, when it comes to the law we were talking about.”

Claims of the BiH Ministry of Defense must be corrected

Speaking about the decision to allocate three million and six thousand marks to the Ministry of Defense of Bosnia and Herzegovina, and why it was not adopted by the Council of Ministers, he said that so much money cannot be paid from the budget reserve because the law defined exactly what the budget reserve entails.

“I think that neither helicopters nor the law on courts can be the most important issues when we talk about Bosnia and Herzegovina. The issue that we put aside and that is important is the budget. That is one job that is in front of us. And when they are in regarding helicopters and when it comes to the Ministry of Chosen BiH, we reached an understanding that that budget request, which amounted to about one billion and 800 million BAM, will not be accepted and will not be realized as such, that is, it must be corrected. This is one of the topics that we must to deal with in addition to these others.”

BiH institutions must start rationalizing spending
Amidžić pointed out that institutions at the level of Bosnia and Herzegovina behave as if they do not share the fate of local communities, entities and cantons.

“All levels have started the process of rationalization, they are trying to implement the processes effectively, only the institutions at the BiH level behave as if they are deprived of that process, and I do not agree with that. For 2024, we have to correct costs because we lack 37 million BAM and that must to correct not only the ministry, but also smaller ones. We talked about the Commission for Concessions, where a million BAM was allocated, but they did not give any concessions, or, for example, the Agency for Support to Police Bodies, they have been working since 2008 and their only obligation is to conduct public procurement and so far they have done only one. Their budget is 1.5 to 2 million BAM at the BiH level.”

In the end, he underlined that budget users must fit into the existing framework and that way they can reach the budget.

“Those who do not want to fit into those frameworks will be guilty or responsible for the fact that state institutions, that is, institutions at the level of Bosnia and Herzegovina, are pushing into temporary financing.”

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