Committee on Economic and Financial Policy in BiH Discussed Reports on Budget Execution of FBIH in 2013

During the course of last week, the Committee on Economic and Financial Policy held two sessions and considered 12 proposals on the agendas of the 42^nd and 43^rd session of the Committee.

The sessions were attended by representatives of Ministries and institutions – proponents of regulations and decisions on the agenda, as well as numerous guests, including a representative of the Institute for Youth Development KULT and other representatives of the project Strengthening Governing Institutions and Processes in BiH.  

The suggested agenda for the 42^nd session of the Committee, held on Tuesday, July 22, 2014 consisted of the following:

1. Proposal law on amendments of the Law on contributions (proponent: Club of representatives of Narodna stranka radom za boljitak) – urgent procedure,
2. Proposal law on amendments to the Law on federal administrative takses and administrative tax rates – urgent procedure,
3. Draft law on financial management and control in the public sector in FBiH,
4. Report on the debt of the Federation of Bosnia and Herzegovina, on the basis of sold bonds and treasury bills, submitted on: March 11, 2014, April 10, 2014, April 29, 2014, and May 26, 2014.
5. Report on budget execution of FBiH, from January 1 to December 31, 2013.
6. Report on the execution of the Financial plan of the Health Insurance and Reinsurance Fund of FBiH in 2013 and the Report on the Execution of the Financial plan of the Federal Solidarity Fund for 2013,
7. Analytical report on the work of the Environmental Fund of FBiH in 2013,
8. The Report on the work of the banking Agency of FBiH in 2013 with the Information on the banking system of FBiH, ending with December 31, 2013, Information on the micro-credit system of FBiH, ending with December 2013, and Information on the leasing sector in FBiH, ending with December 2013, (final unrevised data),
9. Report on the work of the Security Commission for 2013 and the Financial Plan and Programme for 2014,
10. Report on the work of the Concession Commission of FBiH for 2013,
11. Information on the reorganization of the loan from the European Bank for Reconstruction and Development (EBRD)-31788 for the Project Regional program of road development, and the loan from the European Investment Bank (EIB)-20515 for the Project Sarajevo by-pass motorway, approved by the Government of FBiH, with corresponding materials,
12. Other amendments and supplements to the Financial plan of the Health Insurance and Reinsurance Fund of FBiH,
13. Current issues.
14. Proposal decision on adopting the Expenditure programme for funds allocated to the Ministry of Energy, Mining and Industry in the 17th budget allocation for FBiH in 2014, Expenditures for financial property – Other domestic loans.
15. Proposal decision on amendments to the Decision on adopting the Expenditure programme for funds allocated to the Ministry of Energy, Mining and Industry in the 17th budget allocation for FBiH in 2014, Current transfer and other current expenditures – Subsidies for public companies and Subsidies for private companies and entrepreneurs.

We were most interested in two items: Report on budget execution of FBiH in 2013 and Information on re-organisation of the loan taken from the European Bank for Reconstruction and Development, European Investment Bank and the OPEC Fund for the projects concerning the development and building of roads in FBiH.

As part of the project Strengthening Governing Institutions and Processes in BiH, representatives of the Centre for International Development of the State University New York (SUNY/CID) performed an analysis of the budget execution and noted anomalies in the budget plan, since the Work programme of the Government of FBiH for 2013 was adopted in November 2013, and the Budget of FBiH as the supplementary document to the Program in November 2012.

The Commission recommended that the Parliament adopt the Report, with the recommendation that the following Government harmonises the Work programme with the Budget of the Federation of BiH, that grants are reallocated into economy, and that a registry of transfers (grants) be established, pursuant to the law of State Aid, and other recommendations in the Report. The Committee members pointed out the problems in maintaining the rule of law in BiH.

With regard to the Information on the re-organisation of the loan for the projects concerning the development of roads in FBiH, the members of the Committee concluded that they do not have sufficient information for making a decision on re-organising the loan, and instructed the proponent to submit the necessary documents so that they may reconsider the proposal. 

Discussions on the Proposal law on amendments to the law on contribution and the Report on the work of the Banking Agency were not held because the proponent was not present at the session, and the discussion on the Draft law on financial management and control in the public sector in FBiH because it was withdrawn from parliamentary procedure.

Other reports discussed were adopted and the Committee sent them to the Parliament for further consideration, including the Report on the work of the Concession Commission in 2013. Representatives stated that they do not consider the Committee responsible for the lack of implementation of the concession contracts, given that they pointed out during the discussion that only one of over 700 gas stations pay the concession charge.

On Thursday, July 24, 2014, the Committee members discussed the following items on the agenda of the 43^rd session of the Committee:

The Committee adopted both proposals unanimously.