According to information from the Federal Ministry of Finance, the Government of FBiH at its 137th session unanimously determined Budget Proposal of FBiH for 2015. The Government forwarded the Budget Proposal of 2,345,247,169 BAM to Parliamentary procedure. According to the Budget Proposal, funds decreased for 5.3% or 130.3 million BAM in comparison to the FBiH Budget for 2014.
The structure of the income side is the reflection of economic activity during the previous years. Considering that BiH will conduct payment of the III Stand-By arrangement, and the payment of the IV Stand-By arrangement has not been delivered, the net income from indirect taxes was increased in the FBiH Budget for 2015.
The expense side was made based on the demands of budget users, following the legislative, policies and priorities of the Government of FBiH, updated macroeconomic projections and estimate of disposable budget funds. The structure of exprenses presents the reflection of implementing measures of restrictive public expenditure which is one of the priorities of economic policy in the years to come. The fiscal policy of the Government of FBiH will in 2015 be oriented towards activities that will contribute to economic and social strengthening of the Federation of BiH, or the country of BiH. In the context, strict savings measures continue to be implemented in all fields of public expenditure.
Also, the Proposal of Law on Conducting the Budget of FBiH for 2015 was also suggested which, among other things, prescribes that budget users may use the approved funds only for intents determined by the Budget and in accordance with their annual financial plans and dynamics determined in quarterly and monthly plans approved by the Minister of Finances. Budget users are obliged to deliver quarterly financial plans for Budget implementation to the Federal Ministry of Finance 15 days prior to the beginning of a quarter.
The Law also prescribes the order of priorities in implementing the Budget: interest payments and external and internal debt of the Federation of BiH, transfer for veteran disability allowances, other veteran compensations and disability allowances for the non-war invalids and civil war victimes, salaries and reimbursements for all employees, transfer for agriculture and development projects, transfer for displaced persons and refugees and current transfers for cantons and lower levels of authority, public firms and capital investments.