The Government of the Federation of Bosnia and Herzegovina, at a telephone session today, at the proposal of the Federal Ministry for Veterans and Invalids of the Defense and Liberation War, passed a Decision adopting the Program for the expenditure of funds determined by the FBiH Budget for 2026 for the Program Improving the Socio-Economic Status of Members of the Veteran Population and Preservation of the Assets of the Defense and Liberation War, to this Ministry as part of ongoing transfers to non-profit organizations, in the amount of 1,720,000 KM.
The Federal Ministry for Veterans and Invalids of the Defense and Liberation War will submit reports on spent funds to the Federal Ministry of Finance and the Government of the Federation of Bosnia and Herzegovina in accordance with the Law on the Execution of the Budget of the Federation of Bosnia and Herzegovina for 2026 and the Program from this decision.
Part of the funds is designated for providing support and financial assistance to the Foundation for providing legal assistance to members of the military population in Sarajevo and the Foundation for providing legal assistance to members of the military population in Mostar. Funds in the amount of 555,000 KM are approved for the Foundation, and 285,000 KM for the Foundation.
These funds will be used in the amount of 90 percent to co-finance legal aid to members of the defense population in accordance with the regulations on the criteria for the allocation of funds for providing legal aid to members of the defense population adopted by the Foundation’s Board of Directors and the Foundation’s Board of Directors, and 10 percent of the approved amount to co-finance the current costs of the Foundation and the Foundation.
In accordance with the Program adopted today, transfers to the Association of Prisoners of BiH in the amount of 120,000 KM, 70,000 KM to the Croatian Association of Prisoners of the Homeland War in BiH, and 90,000 KM to IDA – research documentary activities and protection of victims of genocide witnesses are determined. The allocation of these funds will be made according to general and special criteria.
A part of the funds in the amount of 600,000 KM was determined to support the Foundation for housing care of the RVI and the veteran population. These funds will be paid into the account of the Foundation for providing assistance in solving housing issues of members of veteran categories, based on the adopted Foundation’s work program for 2026.
At the proposal of the Federal Ministry of Finance, the Government of the Federation of Bosnia and Herzegovina adopted and adopted the document “Guidelines of the economic and fiscal policy of the Federation of Bosnia and Herzegovina for the period 2027 – 2029”.
The Economic and Fiscal Policy Guidelines document for the period 2027 – 2029 was prepared on the basis of the Law on Budgets in the Federation of BiH, which defined the content of the document. The economic and fiscal policy guidelines of the Federation of Bosnia and Herzegovina contain the strategic objectives of the economic and fiscal policy of the Federation and the coordinated priorities of expenditures and expenditures, including priority structural reforms, then the basic macroeconomic indicators of the Federation and the basic indicators of the economic and fiscal policy of the Federation.
It also contains the assumptions of social and economic development for the budget year and for the next two years, the estimate of budget revenues and receipts, the targeted fiscal position, and the harmonized level of total targeted expenditures and expenditures, which reflect the aforementioned priorities of expenditures and expenditures. The guidelines also contain the anticipated changes in public debt and the public debt management strategy.
This document represents a strategic starting point for financial management in the Federation of Bosnia and Herzegovina. In addition to specifying the plans for the next budget year, it also offers clearer guidelines to lower administrative units in order to direct their resources and plans as efficiently as possible towards key policies. Furthermore, the Guidelines serve as a framework for ensuring long-term fiscal sustainability, and provide the macroeconomic context necessary for stable planning of investment and development cycles.
Through this document, the Government of the Federation of BiH defines the priorities of the expenditure side of the budget, taking into account social sensitivity and the need to strengthen economic competitiveness.
The Economic and Fiscal Policy Guidelines document for the period 2027-2029 is harmonized with the strategic documents of the Government of the Federation of Bosnia and Herzegovina.
It is emphasized that European integration is a strategic commitment of Bosnia and Herzegovina and a common interest of its citizens. This process brings opportunities for accelerated economic growth, strengthening the rule of law and a higher standard of living. The opening of accession negotiations and the drafting of the negotiation framework mark the beginning of the most demanding phase, which entails the transformation of the entire society.
The basic strategic document that determines the direction of the economic and fiscal policy of the Federation of BiH in the medium term is the Development Strategy of the Federation of BiH 2021-2027. year. This strategy also reflects the priorities of Bosnia and Herzegovina determined in the process of European integration, including the Economic and Investment Plan for the Western Balkans, the Green Agenda for the Western Balkans and the EU digital strategy, as well as the globally accepted sustainable development goals from the 2030 Agenda.
In accordance with the policies of the European Union, the economic policy of the Federation of BiH in the medium term will be aimed at strengthening sustainable and inclusive economic growth, improving the standard of living of citizens and reducing social and economic inequalities.
It was also emphasized that the Federation of Bosnia and Herzegovina continues to implement policies aimed at strengthening the competitiveness of the economy, digital transformation and support for the green transition, with a focus on improving the business environment, supporting investments and developing small and medium-sized enterprises. Special attention will be paid to investments in education, research, innovation and development of human capital, with the aim of creating a sustainable basis for long-term economic growth and strengthening the competitiveness of the economy.
Thanks to the responsible management of public finances and the maintenance of a relatively low level of public debt, the Budget of the Federation of BiH is characterized by a satisfactory level of liquidity, which enables the timely execution of obligations established by law and other regulations.
The key priorities of the Government of the Federation of Bosnia and Herzegovina in the upcoming mid-term period relate to improving the business environment, encouraging investments and implementing infrastructure projects. Priority activities will be supported through the allocation of significant funds for financing the construction of highways and expressways, the improvement of railway and air traffic, as well as the development of energy infrastructure.
At the same time, activities will continue to rationalize public administration costs, strengthen fiscal discipline and control budget spending, in order to direct available funds to a greater extent towards development and infrastructure projects, announced the FBiH Government Office for Public Relations.
