prijava
SARAJEVO, January 18 (FENA) - Firstly, I would like to thank all the MPs and delegates in the FBiH Parliament who supported this year's budget. The year behind us was extremely difficult and unpredictable. In these circumstances, the adoption of the budget was essential to be able to continue working on stabilizing and recovering the economy. And that is one of the priorities this year, said the Prime Minister of the Federation of BiH, Fadil Novalić, in an interview with FENA.
In your presentation on the budget in the Parliament, you announced certain measures that the Government of the Federation of BiH will take in the fight against the pandemic. What results do you expect from these measures?
"Direct fiscal injection to certain sectors of the economy, and strengthening the potential and stimulating lending through the Guarantee Fund, along with existing programs and measures of departmental ministries, we believe will give significant impetus to economic stabilization and creating conditions for accelerated recovery.
That is why we have planned 150 million KM in this year's budget for the Economic Stabilization Fund. Also, there is 50 million KM for the employment program, in order to compensate for the number of jobs lost due to the pandemic as soon as possible, to return to the level of employment before the pandemic.
Of course, this year we continue financial assistance to lower levels of government with 230 million KM. Part of these funds will be used to support budgets, and depending on the specifics of the economy of the given cantons, the rest will be directed to help the economy with a special focus on crafts, micro and small enterprises.
To strengthen the Guarantee Fund in the Development Bank of FBiH, we have planned an additional 25 million KM. We will stimulate lending with the help of this fund, and we plan to regress the interest for all users of the Guarantee Fund. And that is why we have planned 15 million KM within three ministries for regressing the costs of interest and guarantees.
We expect that the measures will be accompanied by accelerated activation of public investments, for which financial resources are provided either by the budget or by financial creditors. I am thinking primarily of road, energy, airport and railway infrastructure. The budget of the Federation of BiH for this year confirms and realistically contains all the necessary elements, needed not only for the stabilization of the situation but also for the creation of preconditions for an accelerated recovery.
Do these allocations for mitigating of the consequences of the pandemic, actually mean a reduction in other means of support within the budget?
"The reforms carried out by the FBiH Government before the pandemic have enabled us to have stability. That was the main reason why we withstood this great crisis in the Federation of BiH relatively well. In the years of the pandemic, we regularly settled our obligations to all budgetary beneficiaries and citizens. This is confirmed by the continuity of the payment of pensions, benefits for the veteran population and civil disability benefits.
And even in the year of the pandemic, we are witnessing an increase in pensions and an increase in veterans' benefits. The results that this Government achieved before the pandemic, enabled us to have a realistic plan for this year as well.
Our regular transfers, such as the payment of pensions, transfers for agriculture, displaced persons and returnees, the Institute of Health Insurance and Reinsurance, transfers for veterans and mand non-war disabilities, as well as other benefits, I emphasize, have remained at the 2020 level, and the means of servicing these positions are unquestionable. I note that the funds for agriculture have been increased and amount to 87 million KM. The FBiH Government also planned 10 million KM for the purpose of binding the length of service of employees in private and public companies.
There was a lot of controversy in the public about the fact that the FBiH Government was not ready to respond to the crisis, i.e. that the measures taken did not produce an adequate outcome and even that the announced funds of 500 million KM were not spent. What happened with those funds?
"That is, of course, not true. Last year, two sets of measures were implemented, for which 510 million KM were allocated, of which 180 million KM was direct budget assistance to the economy in overcoming the negative effects of the pandemic.
The first set of measures was the so-called passive measures aimed at amortizing the first blow to the economy. Those measures were mostly defined by the Law on Mitigation of Negative Economic Effects and consisted of direct subsidies, i.e. contributions to the minimum salary in the amount of about 245 KM per employee.
This covered more than 390 thousand workers, for which more than 90 million KM were allocated. In addition, the Law provided for the suspension of the payment of the advance on income and profit tax, the suspension of the calculation of default interest for late payments in debt-creditor relations, the termination of forced collection and the establishment of the Stabilization Fund.
The Guarantee Fund of the Federation of BiH has been established at the Development Bank of the Federation of BiH, for which 100 million KM has been provided, which has enabled the fund a credit potential of half a billion KM.
It is an instrument of long-term support for economic activities, i.e. stimulating economic recovery through two phases. In addition, 230 million KM was transferred to lower levels of government, on the basis of grants, 200 million KM to the cantons and 30 million KM to cities and municipalities, to help mitigate the health, social and economic consequences of the pandemic.
Through the Decree on Intervention Measures to Support Vulnerable Sectors of the FBiH Economy, the Government provided 90 million KM. These are four sectors that included export-oriented industries, the tourism and hospitality sector, public transport and the agricultural sector.
The main objectives of this regulation were to support liquidity in the most vulnerable sectors, to preserve jobs, and to provide urgently needed support and maintain competitiveness in export-oriented sectors. Therefore, it is quite clear how the Government of the Federation of BiH acted and how much funds it has allocated according to the established measures. We believe that the measures the FBiH Government has taken to help the economy first managed to stop the layoffs, and then to retain thousands of jobs.
The Covid vaccine is now a priority issue. When will we finally get the vaccines in the Federation of BiH and is our health system able to respond to all the challenges of the pandemic?
"The Government of the Federation of BiH settled its obligations on time and we expect the first doses of the vaccine to arrive. Almost 13.7 million KM have been secured for the procurement of vaccines through the COVAX mechanism from the FBiH Budget in 2020.
From this year's budget, we have set aside an additional 12 million KM, which can also be used to purchase additional quantities of vaccines. If there is a need for additional funds, it will be secured. The Government of FBiH, together with the Ministry of Health and the Ministry of Finance, undertook the necessary activities in a timely manner in order to ensure the procurement of the vaccines for the citizens of the Federation of BiH. Vaccines are procured on the basis of concluded interstate agreements through the COVAX mechanism, as well as through the EU mechanism. Also, we have planned twice as much money in the budget this year, 60 million KM, for health institutions in the FBiH to help fight the pandemic.
To conclude our conversation, what are your predictions, when can we actually expect the recovery from the pandemic?
"The strength of the recession blow in BiH will depend, primarily, on the duration of the pandemic in Europe, as the country's main trading partner. The new situation is a global problem and more than ever, coordination, cooperation and quick reaction of all stakeholders of economic activity are necessary. I assure you that the FBiH has tackled this crisis, trying, with the help of available instruments and mechanisms, to stabilize the economy and create the preconditions for an accelerated recovery. That is our obligation, so we are doing everything to ensure social and economic stability. We have a lot of work ahead of us and we are committed to working with dedication to stabilize the situation and respond to the demands placed before us.
(FENA) S. R.
