Citizens in Bosnia and Herzegovina have a hard time, according to the majority of citizens, as well as experts in the field of economics and finance. The government representatives do not care much about the quality of life of the citizens, while they are looking for more money in the budget for their needs. And the Minister of Finance of Bosnia and Herzegovina warns that the demands of some institutions are unrealistic.
The institutions of Bosnia and Herzegovina lack 37 million marks, says the Minister of Finance. There is also a lack of money for the citizens, who, as we are told, live hard.
While citizens are barely making ends meet, institutions in Bosnia and Herzegovina have increasing budgetary demands. A budget request was sent to the Ministry of Finance and Treasury of BiH, which, due to the demand of some institutions, amounts to a record 2.8 billion marks, which is significantly higher than the planned 1.3 billion for this year.
SRĐAN AMIDŽIĆ, Minister of Finance and Treasury of Bosnia and Herzegovina:
“If someone saw this kind of request as bargaining in the market, in the sense that I will send a bigger budget request in order to receive at least half of the request that I sent, I consider it irresponsible, unprofessional, I consider it a request that will not receive the support of the Ministry”.
Bosnia and Herzegovina and its citizens need systemically sustainable measures, says banking and finance professor Sanel Halilbegović. As an example, he cites the announced set of laws of the Government of the Federation of Bosnia and Herzegovina, according to which the minimum wages in the Federation of Bosnia and Herzegovina would amount to one thousand marks.
Prof. Ph.D. SANEL HALILBEGOVIĆ, professor of banking and finance:
“In the sense of how it was proposed, I think it is not sustainable. It can be sustainable and effective, but only in a symbiosis with concessions in direct taxes, i.e. levies on wages”.
Speaking about the financial stability of the state, the Minister of Finance said that it is not only in his hands, but in the hands of all institutions. He announces relief for citizens in the form of an initiative to exempt him from paying VAT on the first real estate.
The prices of basic foodstuffs have reached astronomical heights. Statistics show that inflation in the first half of the year, compared to the previous one, was higher by almost nine percent. In practice, these figures mean that even the most basic things have become unaffordable for many citizens, and the extent of poverty is also indicated by the increased number of food thefts in markets and retail chains.
Poverty in Bosnia and Herzegovina has gained a new dimension. In addition to those who beg on the street and search containers for a bite of stale bread, there are more and more citizens who steal food, canned goods, meat and pate from retail chains. According to the police, this is especially noticeable in the winter.
“When we talk about these three summer months, for the year 2023, 19 criminal acts of theft were recorded. 13 persons and one minor were reported.”
Pictures from stores all over Bosnia and Herzegovina show that food theft has really taken off. The so-called buzzers are placed by merchants on butter, preserves, jams and the like.
“In earlier years, other things were stolen in shopping centers, most often textile products and clothes were stolen, but if it came to a situation, and there is talk about it, that consumers, citizens started taking food products as well, then you know that it is safe the situation is very difficult, it means that purchasing power has decreased, considering the previous period and that inflation has taken its toll,” says Jovan Vasilic, Consumer Association “Zvono”.
According to sociologist Drago Vuković, food theft is an indicator of a deep crisis and an alarm to the authorities that they need to react immediately.
“All these post-communist societies are poor, societies in transition, they did not initiate a strong development drive, as is done in other societies, and on the other hand we have strong corruption and crime. And then we get the consequence you mention,” explains Drago Vukovic, sociologist.
The short-term actions of the authorities are not enough, a systemic, long-term solution is needed, appeal our interlocutors and add that society is spiraling unstoppably into misery.
The trade union consumer basket in the Federation of Bosnia and Herzegovina calculated by the Federation of Independent Trade Unions of Bosnia and Herzegovina for the month of August 2023 is 3,322.90 BAM.
The average salary paid in the Federation of BiH for the month of June 2023 was 1,262 BAM, according to data from the Federal Bureau of Statistics). The minimum wage according to the FBiH Government Decision is 596 BAM.
Coverage of the Trade Union Consumer Basket by the average salary is 37.98 percent. Coverage of the trade union consumer basket by the minimum wage is 17.94 percent, according to the Association of Independent Trade Unions of Bosnia and Herzegovina.
When preparing the Trade Union Consumer Basket, the average salary paid in the Federation of Bosnia and Herzegovina and the minimum living expenses of a four-member family consisting of two adults and two children, one of whom is in high school and the other in elementary school, were taken into account. The consumer basket itself is made up of the following categories (next to the name is the percentage of participation of the individual category in the union consumer basket).
The consumer basket itself consists of the following categories: food 37.51 percent, housing and communal services 11.75 percent, hygiene and health care 8.07 percent, education and culture 17.45 percent, clothing and footwear 15.05 percent, transportation 4, 15 percent, housekeeping 6.02 percent.
In the food category, prices from three shopping centers were used for 86 items. When it comes to hygiene and health maintenance, expenses for ten items were counted, and for housing and communal services, expenses for six items.
