Council of Ministers of BIH Holds Its 51st Session

2022 DRAFT BUDGET ADOPTED 

The Council of Ministers of BIH adopted a Draft Budget of BIH Institutions and International Obligations of Bosnia and Herzegovina for year 2022, to be passed by the Ministry of Finance and Treasury to the BIH Presidency, which is the authorised initiator.

The total revenues, receivables and funding of BIH Institutions in year 2022 amount KM 1,073,600,000, and are increased for 8% or KM 77,600,000 relative to the 2020 Budget, while foreign debt servicing amounts to KM 819,189,119 and is higher for KM 11,636,188 or 1% in relation to 2020 budget.

Indirect tax revenues are planned to amount KM 865,500,000 and are higher for KM 85,500,000 or 11% relative to 2020 budget.

The 2020 Draft Budget supports as a priority, the continuation of reforms related to fulfilment of the European partnership–related requirements, implementation of the Stabilisation and Accession Agreement, funds provision for 2022 General Elections, and the multi-annual project implementation by budget users.

Total expenditures of BIH Institutions and foreign debt servicing are KM 1,892,789,119 and are higher for 5% or KM 89,236,188 in respect to year 2020,

APPORVED FUNDS TO CEC FOR GENRAL ELECTIONS

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed decision to approve a temporary use of resources earned from permits for use of the radiofrequency spectrum for mobile and access systems service provision. The decision approves the use of KM 9,728,000 to the Central Election Committee (CEC ) for the purpose of implementation of the general elections.

The CEC announced the general elections for October 2, 2022.

DANUBE REGION 2021-2027 COOPERATION PROGRAMME

The Council of Ministers of BIH adopted a piece of information on a transnational cooperation programme Interreg VI-B Danube Region 2021.2027 (Interreg VI-B Danube Region Programme 2021-2027), concerning a signing of a letter of consent before submission of the programme to the European Commission for adoption.

The Director of the Directorate for European Integrations of BIH was authorised to sign the letter.

A final draft of the programme document for the Danube Region Cooperation Programme, together with signed-to letters of consent by the participating countries, should be provided ot the European commission this July, and it is expected to be approved in October 2022.

The signing of mentioned letter would mean a confirmation of consent to the programme contents and related funding obligation.

The Danube Region Programme is a cooperation programme of EU member countries in the Danube Region, and it is open to EU candidate countries and potential candidate counties (Bosnia and Herzegovina, Montenegro and Serbia).

The EU input to the Danube region programme 2021-2027 is EUR 213,103,953.00, encompassing ERDF, IPAIII and NDCI inputs into a joint programme fund. The co-financing share of Programme beneficiaries is at least 20%, which, accounting the EU contribution, provides the total value of the Programme of EUR 266,379,941.26.

Upon signing of the letter of consent and endorsement of the Programme by the European Commission, the DEI BIH should plan resources for this purpose in the BIH Budget, while finds transfers should follow signing of related financial agreements.

APPLICATION OF ALTERNATIVE RULES OF ORIGIN SUPPORTED

The Council of Ministers of BIH adopted a piece of information on an alternative applicable rules of origin for the aim of incorporating them into free trade agreements, concluded by Bosnia and Herzegovina.

The Ministry of Foreign Trade and Economic Relations of BIH should take needed activities so that, in compliance with CEFTA 2006 Agreement, Free Trade Agreement with EFTA member-countries and Free Trade Agreement with the Republic of Turkey, the alternative rules of origin might be applied. The Ministry of foreign Affairs of BIH should take needed activities for the Stabilisation and Accession Council to take a decision enabling the application of alternative rules of origin. The relevant Ministries are obliged to inform the BIH Council of Ministers accordingly.

The alternative rules of origin stem from a Revised Convention, which, due to no consensus, was not adopted by the PEM Convention Joint Board on Nov 27, 2019, but member-signatories are allowed the application thereof at a bilateral and temporary basis.

Refinements to the Revised Convention refer to an introduction of more flexible and simpler rules, which BIH industry would easier fulfil and thereby improve its export competitiveness.

The revised specific rules for agricultural and industrial products are more flexible and adjusted to contemporary production and trade conditions, and they generally facilitate fulfilment of criteria for gaining status of a product with origin.

The application of alternative rules was supported by the relevant Entity and Brčko District of BH institutions, and Chambers of Commerce alike.

FUNDS DISTRIBUTION FORM “EU4HEALTH” PROGRAMME

The Council of Ministers of BIH adopted the Ministry of Civil Affairs-proposed decision on distribution of financial resources from the special purpose programme “EU4Health” – contribution to Covid-19 vaccines availability in Bosnia and Herzegovina, with the total grant amount of EUR13,775,280.

The funds are distributed according to the principle 62% for the Federation of BIH and 38% for Republika Srpska, respectively. A share of 2.5 % accorded to the Entities will be passed to the Brčko District of BIH. The finances planned for the Federation of BIH will be divided to 50% to the federation and 50% to ten cantons.

Out of total grant funds, EUR 40,000 will be reserved for visibility and communication of special purpose programme activities. The funds will be distributed to: the Ministry of Civil Affairs of BIH - EUR 7,000; BIH Federation – EUR 19,948.50; Republika Srpska – EUR 12,226.50: Brčko district of BIH – EUR 825.

The finances from the Programme are realised under a grant contract for the European Union Foreign Action, concluded between the Ministry of Civil Affairs and European Commission. Out of total amount provided to Bosnia and Herzegovina, the major part, about 85%, will be used for vaccines procurement, while the remaining 15% will be used for provision of vaccination material and equipment.

BIH TO HOST IMF/WB CONSTITUENCY MEETING

The Council of Ministers of BIH adopted a piece of information on holding of the World Bank Group/International Monetary Fund Constituency meeting in Bosnia and Herzegovina, on September 15-16, 2022.

BIH-EU SUB-COMMITTEE FOR AGRICULTURE AND FISHERY

The Council of Ministers took note of a piece of information on holding of the sixth meeting of the Sub-Committee for Agriculture and Fishery between the European Union and Bosnia and Herzegovina, on June 6, 2022, and adopted the relevant discussion paper.

It also took note of the agreed-to meeting agenda and consented to the BIH Delegation composition.

The Directorate for European Integrations should translate the Discussion Document to English language and provide it to the European Commission within the required deadline, including all remaining preparatory activities for the meeting.

The BIH Delegation chairman should be available to media for all related inquiries, and should report the Council of Ministers on the work of the meeting. (end)