The FBiH Budget Proposal for 2023 in the amount of 6.7 billion KM has been established
On the proposal of the Federal Ministry of Finance, at today’s session in Sarajevo, the Government of the Federation of Bosnia and Herzegovina established the Proposal for the Budget of the FBiH for 2023 and the Proposal for the Law on Budget Execution, which will be referred to the parliamentary procedure as a matter of urgency.
The proposed budget of the Federation of BiH for the next year amounts to 6,725,847,563 KM, and compared to 2022, it is higher by 1,128.2 million KM, that is, by 20.1 percent.
As explained by the Federal Ministry of Finance, the structure of the proposed FBiH budget for 2023 is characterized by the growth of tax revenues, especially revenues from contributions for pension and disability insurance, and revenues from indirect taxes. On the other hand, an increase in the amount of budget expenditures, interest and expenditures for the acquisition of fixed assets is planned with a decrease in capital transfers. Although the revised revenue projections are favorable and optimistic, it was pointed out that with the reduction of receipts from financial assets and borrowing, a significant amount of funds is earmarked for debt repayment compared to the previous fiscal year.
The total tax revenues projected in the FBiH Budget for 2023 amount to 4,843.6 million KM and are 21.7 percent higher than the previous year. In particular, this refers to revenues collected from pension and disability insurance contributions, which are planned in the amount of 2,683.1 million KM, and revenues from indirect taxes from the single account, which are planned in the total amount of 2,077.2 million KM. Non-tax revenues, current transfers and donations are planned in the amount of 607.2 million KM, which is 23.3 percent more compared to the previous budget.
Receipts from financial assets and borrowing and accrued income, in the proposed budget of FBiH, are planned in the total amount of 1,074.7 million KM.
Current transfers and other current expenditures are planned in the amount of 4,558.1 million KM and are 22 percent higher than in 2022. Viewed individually, the biggest increase refers to the payment of pensions on several different legal bases, for 665 million KM.
Current transfers to individuals are planned in the amount of 3,777.4 million KM and are 23 percent higher than the FBiH Budget for 2022. Therefore, the most significant increase refers to the transfer to the Federal Institute for Pensioners, given the expected rate of regular adjustment of pensions, and the extraordinary increase of the lowest pensions from November 2022 by 5 percent. An amount of 2,686.5 million KM is planned for the payment of pensions, which is 536.5 million KM more than the previous year.
Then, the transfer for persons with disabilities – non-war invalids, is planned in the amount of 160 million KM, which is 18 million KM more than in 2022.
Then, at the division of the Federal Ministry of Labor and Social Policy for the implementation of the Law on Caregiving Parents in the FBiH, 28 million KM is planned, which is an increase of 10.5 million KM, while the transfer for the implementation of the Law on Material Support for Families with Children in the FBiH amounts to 106 million KM and represents an increase of 56 million KM compared to the fiscal year 2022.
Also, the Federal Ministry for Veterans and Invalids of the Defense-Liberation War is planned to allocate more financial resources for the payment of pensions realized on the basis of the Law on Premature Favorable Retirement of Defenders of the Defense-Liberation War in the amount of up to 22.2 million KM. The current transfer for disability benefits is planned in the amount of 278 million KM and is higher by 6.3 million KM.
The incentive for agriculture is planned in the amount of 160 million KM, allocated by the Federal Ministry of Agriculture, Water Management and Forestry, which is an increase of subsidies to private companies and entrepreneurs by 54 million KM compared to the previous year.
Within the current transfers to other levels of government and funds, a new transfer is planned for the project – Support of the European Union of Bosnia and Herzegovina in order to mitigate the negative socio-economic impact of the energy crisis in the amount of 90.4 million KM. The budget beneficiaries responsible for the implementation of this aid are the Federal Ministry of Development, Entrepreneurship and Crafts, the Federal Ministry of Spatial Planning and the Federal Ministry of Labor and Social Policy.
Two planned current transfers from the Federal Ministry of Health, namely to the Institute for Health Insurance and Reinsurance of the FBiH in the amount of 33.5 million KM, which is an increase of 5 million KM, and for the purpose of biomedically assisted fertilization in the amount of 10 million KM .
Government support for housing credit lines through Union Bank aimed at young people continued, as well as subsidies to JP Elektroprivreda BiH based on subsidies for electricity costs for the most vulnerable categories of the population.
Among other things, subsidies to private companies and entrepreneurs are planned in the amount of 178 million KM, which is 57.6 million KM more compared to the previous budget.
Planned capital transfers in the Budget of the Federation of BiH for 2023 amount to 269.7 million KM.
When it comes to the acquisition of permanent funds in the form of rights, the Project for the construction of the Palace of Justice of the Federation of Bosnia and Herzegovina in the amount of 3.5 million KM is also planned.
Expenditures for debt repayment are planned in the amount of 1,122.5 million KM and are higher by 273.3 million compared to the amount in the previous budget. In addition to the above, the realized surplus from the previous period in the amount of 200 million KM is also planned.
In the explanation of the budget, the Federal Ministry of Finance stated, among other things, that it made projections of income and receipts for the year 2023 in accordance with the projections of macroeconomic indicators for the year 2023 of the Directorate for Economic Planning of BiH and the projections of income of the Department for Macroeconomic Analysis of the IIA of BiH.
The Federal Ministry of Finance, among other things, pointed out in its explanation that one of the principles and key priorities when planning budget funds for the next fiscal year was ensuring stability in the payment of pensions, veterans’ and social benefits, and other benefits provided for in the Budget of the Federation of BiH, it was announced. from the FBiH Government Office for Public Relations