The 5th session of Committee on Economic and Developmental Policy, Finance and Budget of the Parliamentary Assembly’s House of People of the Federation of BiH was held on Wednesday, 16 December 2015.
In this session of the Committee, the 2016 FBiH Budget Proposal was adopted with an increase of 65 million BAM in comparison to the previous year. This amount was increased partly due to the expected privatization income, in accordance with the FBiH Privatization Plan for 2016. Among other things, an allocation for investment maintenance in amount of 5 million BAM was planned, and the Federal Ministry of Justice will have 1 million BAM for implementing a set of anti-corruption laws at its disposal. The amount will include accommodation for the special department of the Persecution and the Government of FBiH will subsequently determine the additional usage of funds.
Several MPs of the Committee emphasized the problem of the cantons allocating massive funds for payment of debts, which presents a great burden for the cantons. From the Federal Ministry of Finance, they emphasized that the FBiH Government determined the following 3 priorities for 2016: implementation of Law on Binding Years of Service, particularly for employees in economic associations; a reform of retirement and disability insurance through a new law on organization of system of this insurance and resolving the issue of accommodating the institutions of the FBiH Government. Since these priorities have been established, it was not possible to increase budgets for cantons in order to decrease the burden of debt payment. For adopting the Budget Proposal of the Federation of Bosnia and Herzegovina for 2016, 5 delegates voted for and 2 delegates were sustained, so the Proposal was accepted. The Proposal of Law on Implementing the Budget of FBiH for 2016 was also accepted with 5 votes for and 2 sustained. The Law is modified in comparison to the previous laws so as to enable the Budget of the City of Mostar to be enacted by the Mayor and his Budget Assistant due to the specificity of the situation in the City of Mostar. The document of the Budget Framework of the FBiH for 2016 – 2018 was also accepted with 6 votes for and 1 sustained.
The Proposal of Law on Factoring that regulates the purchase of short-term demands up to 180 days, for goods and services. This Proposal primarily relates to managing the business of the Society for Factoring that will in the instance of adopting the Law in both Houses of the Parliament of FBiH be obliged to adapt their business in accordance with this Law.
The Proposal of the Decision on providing consent to the Financial Plan of the Federal Employment Bureau for 2016 and the estimate of the Plan for 2017 and 2018 was also discussed along with the Decision on Implementation of the Financial Plan of the Federal Employment Bureau for 2016 that were accepted by the Committee. The Committee MPs expressed the requirement for a more detailed analysis of effects of the employment programs. Representatives of the Federal Employment Bureau emphasized that the financing and co-financing self-employment from the program was planned in amount of 50 million BAM and to include 10,000 persons.
The Proposal of the Financial Solidarity Plan of FBiH for 2016 was accepted, along with the Financial Plan of the Professional Service of the Institute for Health Insurance and Reinsurance of FBiH for 2016 and the Proposal of Decision on Providing Consent to the Financial Plan of the Federal Retirement and Disability Insurance for 2016 and with 5 votes for and 2 sustained.
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