News in English     | 29.12.2020. 09:42 |

Milićević: Proposed budget focuses on economic and social stabilization of FBiH

FENA Dejan Jazvić

SARAJEVO, December 29 (FENA) - Deputy Prime Minister and Minister of Finance of the Federation of BiH Jelka Milićević called on MPs and deputies in both houses of the entity parliament to support the FBiH Budget Proposal for 2021 and thus enable the implementation of active government measures in the upcoming period.

“The budget for 2021 was made in specific conditions, 2020 was a year in which economic activities slowed down, when the economies of Europe and the world were closed, when incomes fell and when the requirements for equipping health facilities, for repairing the consequences of the pandemic, for social care of certain categories of the population increased. This is something that will continue in 2021, and in these conditions, the Government has proposed a budget framework in the amount of 5,481,251,699 KM. This framework should ensure financial stability and the continuation of government measures to recover and stabilize the economy,” said Minister Milićević in an interview with FENA.

The government has planned that revenues will be roughly the same in 2021, meaning they are 15 percent lower than revenues in 2019 when revenues peaked. At the same time, there is a need to define Government policies to address the consequences of the pandemic.

“This year, the Government's commitment to significantly support lower levels of government and to contribute to the stabilization of their budgets is recognizable. Cantonal governments should have direct support from the FBiH Government in the amount of 200 million KM. Municipalities, on the other hand, in two parts - 10 million KM should be paid directly to their budgets and while the second part should be paid through capital investments of 20 million marks. The government continues its active policy towards young people, their additional employment. A direct grant is planned for active employment and self-employment measures. Support through a special credit line for start-ups for small and medium enterprises in the amount of 50 million KM has been defined, as well as the Government's policy for easier resolution of housing issues of young people by combining Government funds in the amount of 25 million KM,” Milićević said.

The proposed budget also envisages funds for the Stabilization Fund and its amount is 150 million KM.

“So, all the policy of the Government through this budget is focused on preserving the capacity, retaining and possibly increasing the number of employees. In this way, we plan to achieve a growth of gross domestic product in 2021 of 2.5 to 3 percent. With such active measures we can give our contribution to this and I believe that our budget proposal recognizes the commitment of the Government to help those who fill the budget. For all this, we are actively negotiating sources of funding. These sources of regular income are currently insufficient and we must seek them from the EU and their funds, the International Monetary Fund and other international financial institutions. The IMF, in turn, is looking for restructuring, reform processes, and that is something that is an integral part of the budget at the moment and about which both the Government and the Parliament must decide. It is not easy, but it is necessary, because only in that way can we make a step forward and ensure that young people stay in BiH, work and create jobs in their country,” adds Milićević.

As he points out, predictions are that BiH could become a country of the elderly by 2050, and the Government wants to refute that and therefore calls on MPs and delegates in both houses of the Federal Parliament, together with the Government, to adopt the budget and take responsibility for its implementation.

“The IMF support has not been defined at this time, but the arrangement has not been abandoned. I believe that we will continue these negotiations and that they will be completed to the satisfaction of all participants in the negotiations,” concluded Minister Milićević in an interview with FENA.

 

(FENA) L. N.

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