The Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, met today at the headquarters of the Government of the Federation of Bosnia and Herzegovina in Sarajevo with the Head of the Mission of the International Monetary Fund, David Amaglobeli, who is visiting Bosnia and Herzegovina this week.
The meeting was also attended by the Resident Representative of the IMF Mission in Bosnia and Herzegovina, Andreas Tudyka.
The main topics focused on economic and fiscal trends, structural reforms and fiscal policy priorities, and the European path of our country.
When it comes to economic trends, it was emphasized that the main focus of the Government of the Federation of Bosnia and Herzegovina is the faster implementation of public investments, especially road infrastructure, because due to the engagement of domestic production factors, this area has the largest multiplier for economic growth. In the area of revenue collection, the Federation of Bosnia and Herzegovina continues to record positive trends, especially in the sphere of revenue from contributions and revenue from indirect taxes. At the same time, this dynamics of revenue growth also enables certain measures that should have a positive effect on consumption growth, and then on economic growth.
“Revenue growth, as well as the responsible policy of the Government of the Federation of BiH towards public finances, have enabled us to fulfill our obligations on time, but also to ensure certain investments that lead to economic growth,” said Prime Minister Nikšić.
In this context, in addition to investments in road infrastructure, Prime Minister Nikšić also emphasized planned investments in railway and energy infrastructure, especially in renewable energy sources and the Southern Gas Interconnection. He added that with planned investments and stimulus measures and the recovery of the economies of our largest trading partners, economic growth of around three percent can be expected in the coming year.
The guests were also informed about the measures taken by the Government of the Federation of BiH this year relating to improving workers’ standards and relieving the burden on employers and the economy. This includes increasing the minimum wage, and with the aim of preserving jobs in the Federation of BiH, subsidizing employers and the economy, and enabling tax-free support payments to workers, while as of mid-year this year, the contribution rate in the Federation of BiH has also been reduced by 13.25 percent.
During the meeting, information was exchanged on fiscal trends, as well as projections for the coming year. Prime Minister Nikšić emphasized that the focus of the Government of the Federation of BiH remains on continuing the initiated fiscal reforms, collecting revenues and controlling expenditures, and the process of fiscalizing transactions.
On this occasion, it was also assessed that resolving the disagreements on the issue of state property would provide additional impetus to economic growth, taking into account the expressed interest and the volume of investments awaiting agreement on this issue.
The interlocutors expressed satisfaction that the European Commission had approved the Growth Plan for BiH, and Prime Minister Nikšić expressed the full commitment of the Government of the Federation of BiH to fulfill its obligations in reforms and on our country’s European path.
The Federal Prime Minister thanked the IMF for the successful cooperation and technical support so far, and the Head of the IMF Mission said that this institution appreciates the good cooperation and provides support to the Government of the Federation of BiH, expressing its commitment to the success and progress of Bosnia and Herzegovina, the Public Relations Office of the Government of the Federation of BiH announced.
