The 6th Session of the Committee on Economic and Financial Policy of the Parliamentary Assembly’s HoR of BiH was held on Monday, 16 November 2015. The session was headed by the Commitee Vice-President Radoslav Luburi?.
The first semi-annual Report on Performing the Budget of FBiH for 2015 was adopted at the 6th session of the Committee. It was concluded that the greatest amount of public funds is being spent on general public services and social care. Representatives of the project of building the highway on the Coridor Vc did not attend the session of the Committee, so that the stated Agenda item will be discussed subsequently.
Both Reports on Indebtness of FBiH were adopted based on bonds and treasury records. The debt based on treasury records for 1 year amounts to 280 million BAM and in 2015 110 million BAM in bonds were realised and an additional 200 million BAM of debt in bonds will also be accumulated. Since the currency risk of debt in foreign currency is significant with the International Monetary Fund, the Ministry of Finance of BiH consider the indebtness with the MMF and the creditors through bonds and treasury records to be at an approximate cost level.
The Information on External and Internal Debt in FBiH on 31 December 2014 was also acknowledged. As for the level of indebtness, the FBiH is 6 billion and 250 million BAM in debt, out of which 1 billion and 100 million BAM is of internal debt, while the rest is external debt. Still, it has to be taken to consideration that the amount of internal debt does not contain the debt according to the legally valid court decisions made by officials of sectors of health, education, etc.
On behalf of the SGIP project, the Board members were addressed by the Head of Project, Christian Haupt, who thanked the Board for the opportunity to present the Document of 2016-2018 Budget Framework.
Also, ahead of the Strengthening Governmental Institutions and Processes project (SGIP) in BiH, Mrs. MerdĹľa Handali? Plahonji? presented the Document of 2016-2018 Budget Framework and listed the potential improvements. One of the significant improvements could be introducing the programme budget in the Document of the Budget Framework and listing budget priorities that are currently not defined precisely. Also, the recommendation is to change certain laws that affect the revenue increase, and these increases could be avoided. Even though the Federal Ministry of Finance has been working on introducing the programme budget, we currently have a line budget with an economic classification at all levels, from which it cannot be concluded what the aim of budget is and what results were achieved.
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