The 14th session of Committee on Economic and Financial Policy of the Parliament of FBiH was held on Tuesday, July 12, 2016. During the 14th session of the Committee, the MPs adopted the Proposal of the decision on accepting the indebtedness according to the Agreement on Financing signed between BiH and the International Fund for Agricultural Development (IFAD) for realizing the Rural Competitiveness Development Project (RCDP). It is a continuation of the realization of the existing project and the total amount of credit is 6,400,000 Euros. These are no-interest funds and the FBiH will only be paying for the expenses of servicing the credit.
During the session, a Proposal of the decision on accepting the indebtedness according to the Agreement on Loan signed between BiH and the OPEC Fund for International Development (OFID) for realizing the Project of Development of Rural Entrepreneurship was also adopted. This project will include 27 municipalities and will be intended for small businesses. It is estimated that this project will increase the employment of youth and women for 5 to 10%.
In accordance with the Information of the Federal Ministry of Finance, there are 29,000 households in FBiH that are in poverty or close to it, so these projects are intended to support these households in particular.
The following documents were also acknowledged: the Report on approval of funds from the Current FBiH Budget Reserve for 2015 and for the first half of 2015, the Report on FBiH indebtedness based on the Emission of Treasury Records, the Annual Plan of indebtedness for 2016 and the Quarterly Report on debt for the final Quarter of 2015 and a Quarterly Report on Debt for the first quarter of 2016. The Information on External and Internal Debt in FBiH on December 31, 2015 was also acknowledged.
The Conclusion of the Committee is that every discussion concerning the budget is to be followed with an information about the indebtedness plan and with a Document of the Framework Budget. The problem with budget planning is the lack of synchronization of the annual calendars of budget planning. The Agenda should be a basis for developing the FBiH Budget, which should be synchronized with the annual investment plan.