There are a number of economic factors and decisions due to which the Government of the Federation of Bosnia and Herzegovina (FBiH) needs to rebalance the budget for 2023. This is a common activity during budget implementation, and the increase will now amount to 211.7 million BAM.
It should be noted that the budget recorded an increase in tax revenues by 205.110.604 BAM, or 36 percent compared to the adopted budget, which is less than the planned budget increase. However, the increase of 211.7 million BAM refers to 5.6 million BAM in non-tax revenues, an increase in receipts in the amount of 10 million BAM, and a decrease in received current transfers from foreign governments in the amount of nine million BAM.
Increase in interest on debts
In the explanation of the amendments to the FBiH Budget for 2023, the Federal Ministry of Finance cites the first reason for the increase in external debt due to the rise in reference interest rates and other global influences such as the post-pandemic recovery and the war in Ukraine.
Increase in pensions from May
The most significant increase in connection with current transfers refers to the planning of missing financial resources for the payment of pensions in the amount of 14.2 million BAM, which is an increase of 3.9 percent.
Bearing in mind that the Government of the FBiH, at the 3rd Session held on May 19th, 2023, passed the Decision on the extraordinary adjustment of pensions in the percentage of 3.9 percent, starting with the payment of the pension for May 2023, it was estimated that an additional 14.2 million BAM will need to be secured for the said adjustment in the current fiscal year,” it was stated.
Assistance to the population and vulnerable categories
In the FBiH, high inflation of 14.9 percent was recorded, of which the highest growth was achieved in the prices of transportation and food, which had a negative impact on private consumption, especially on the consumption of the most vulnerable categories of the population.
Accordingly, the Amendments to the Law on the Basics of Social Protection, Protection of Civilian Victims of War, and Protection of Families with Children were adopted, and there was an increase in the base applicable from April 1st, 2023.
For the implementation of this law, in the Budget of the FBiH for 2023, in addition to the planned 160.0 million BAM, missing financial resources were estimated in the amount of 66.9 million BAM, which includes existing beneficiaries, non-war disabled persons, and the potential number of new beneficiaries in 2023.
In the same section, the missing financial resources are planned for the implementation of the Law on Support for Families with Children in the FBiH in 2023 in the amount of 15.6 million BAM.
Amendments to the Budget of the FBiH for 2023 foresee an amount of 281.3 million BAM for disability benefits, which is 3.3 million BAM more than the funds planned for 2023, Klix.ba reports.
E.Dz.
