Sjednice
Council of Ministers of BIH Holds Its 53rd Session
06/29/2022
The Council of Ministers of BIH defined a Proposal Framework Agreement on Financial Partnership between the European Commission and Bosnia and Herzegovina concerning special implementation arrangements of Union Financial Assistance to BIH within the Instrument of Pre-Accession Assistance (IPA III).
The Framework Agreement IPA III enables Bosnia and Herzegovina to get financial support through the Instrument of Pre-Accession Assistance for adoption and implementation political, institutional, legal, administrative, social and economic reforms necessary for harmonisation with Union values process and gradual harmonisation with tis rules, standards, and political practice in the EU accession process.
It is about a type agreement for all candidate and potential candidate countries.
The Ministry of Finance and treasury will provide the Proposal Agreement with Platform for its conclusion to the BIH Presidency, with a proposal for the Chairman of the Council of Ministers as the BIH signatory thereof. A ratification procedure is necessary for the Agreement to take effect.
BUDGET EXECUTION REPORT ADOPTED
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed Budget Execution Report of BIH Institutions and International Obligations of BIH for the first half of 2021, to be passed to the BIH Presidency and Parliamentarian Assembly by the Ministry of Finance and Treasury.
The Report will be published at both the Council of Ministers and Ministry of Finance and Treasury web sites.
The total realised revenues, receivables and finances disposed by BIH Isntituions in time period January – July 2021 were KM 507,436,638, while total realised expenditures and costs were KM 454,278,474.
The financing of BIH Institutions in the first half of 2021 was made based on the Council of Ministers decisions on temporary financing, and since the 2021 Budget was not adopted, the planed revenue level was based on the half of the 2020 Budget level. BIH Institutions continued with savings in reimbursements and material costs in 2021 as well, so costs of net salaries and reimbursements to employees’ remained at the same level as in 2012, i.e. the relevant Council of Ministers decision on reduction thereof continued to be applied.
In tine period from January 1 to June 30, 2021 all sovereign debt obligations were timely served in total amount of KM 382,552,602.89.
The session adopted a Budget Execution Report of Institutions of Bosnia and Herzegovina and International Obligations of BIH for January-September 2021, to be published by the Ministry of Finance and Treasury at its web site.
According to the Report, total realised revenue, receivables and finances at disposal to BIH Institutions for nine months of 2021 were KM 743,820,537, while total expenditures and costs were KM 693,870,383.
All due foreign debt obligations were serviced timely in total amount of KM 570,356,362.
PIECE OF INFORMATION ADOPTED ON PUBLIC INDEBTEDNESS OF BOSNIA AND HERZEGOVINA AS AT DEC. 31, 2021
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled piece of information on the Public Debt of Bosnia and Herzegovina as at December 31, 2021, and will send it to the Parliamentarian Assembly of BIH.
According to the piece of information, the public debt of Bosnia and Herzegovina was KM 12 billion. and 816.03 million as at Dec. 31, 2021, of which the foreign debt was KM 9 bil. and 118.24 million or 75.67%, and internal debt was KM 3 billion and 118.24 million or 24.33%.
Relative to Dec- 31, 2020, the public debt increased for KM 623.05 million, of which the foreign debt increased for KM 999.53 million, while internal debt decreased for KM 376.48 million.
Overall, the Federation of BIH participates in total public debt with 51.98%, Republika Sprska with 48.04% and BIH Institutions with 0.49 %, while the Brčko District of BIH participates with 39%.
A share of BIH public debt in 2021 GDP was 34.82%
The foreign debt servicing in 2021 accounted for KM 805.31 million, of which KM 680.37 to principal and KM 124.94 to interest. In total public debt servicing, the share of the Federation of BIH is 65.29 %, Republika Srpska is 32.90%, BIH Institutions is 0.93%, and the Brčko District of BIH is 0.88%.
550 CONCLUSIONS OF COUNCIL OF MINISTERS IMPLEMETED
A review of realisation of the Council of Ministers of BIH conclusions for year 2021 was considered, upon a proposal of the Secretariat-General; conclusions were made at 22 regular and 21 extraordinary sessions.
It covered 36 institutions of the Council of Ministers of BIH, which realised 550 conclusions, out of total 605 taken or 91%, while 55 conclusions remained unimplemented.
Ministries and other institutions that failed to implement conclusions of the Council of Ministers of BIH are responsible to implement them fully without any delay, and to report accordingly to the Council of Ministers of BIH Secretariat-General.
Also, activities, the completion of which requires longer time or cooperation with other institutions, should be accelerated.
The implementation status of the conclusions being currently dealt with should be reported by relevant Ministries and other institutions.
TO STEP-UP CONCLUSION AND PUBLICATION OF FINANCIE CONTRACTS
The Council of Ministers of BIH adopted a piece of information by the Ministry of Finance and Treasury on current issues of gaining effectiveness and their solving in procedures of conclusion of international financial contracts. The aim is to accelerate the contracts conclusion and advance the end effects of the projects approved.
The Ministry of Finance and Treasury will follow permanently relevant procedures of international financial contracts conclusion and repot accordingly the Council of Ministers regularly.
The Ministry of Foreign Affairs will analyse possibilities for improvement of legal solutions as to urgent procedures of ratification of international financial agreements for allocation of grant financial funds to BIH, and will propose possible adjustment of deadlines of publication of international financial contracts in the “Official Gazette of BIH”.
The official web site of the Ministry of Finance and Treasury will contain a technically adjusted contents of this piece of information.
The piece of information points at, among other things, a need for shortening of time of preparation, approval and ratification of itnenratioanl financial contracts fo BIH, including a legally prescribed deadline for publication, which should not exceed a 90-day deadline, in addition to further procedure development and transparency improvement relative to conclusion of international financial contracts.
CURRENT BUDGET RESERVE
The Council of Ministers of BIH adopted and will pass to the Parliamentarian Assembly of BIH a piece of information on distribution and use of Q I-III 2021 current budget reserves.
Out of planned KM 1,837,500.00 current reserve funds, total KM 763,735.00 were approved and KM 733,534.00 implemented in the reported time span.
The major portion of funds were allocated to support to the Republic of Croatia (Km 500k) and the Kostajnica Municipality in BIH (KM 100k) for rehabilitation from an earthquake of December 2020 in the Sansko-Moslavačka province.
BIH INSTITUTIONS SUPPLEMENT INPUT ADOPTED
The Council of Ministers of BIH adopted the BIH Institutions input supplement for a regular annual report on Bosnia and Herzegovina for March 17- May 13, 2022, to be passed to the European Commission by the Directorate for European Integrations.
The document includes a review of activities implemented by general government, relevant for the EU accession process of BIH, and it covers, among other this, numerous issues concerning the internal market, competitiveness, inclusive growth, agriculture development, Green Agenda implementation, as well as foreign relations.
OVER KM 37.7 MIL. PROVIDED BY CoMBIH TO CONTAIN COVID
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled implementation report on funds for rehabilitation from economic damage caused by Covid-19 epidemics, provided from 2020 Budget; the report was made based on relevant reports from other government levels.
Beneficiaries of the special purpose funds should continue the realisation of activities they have started in order to recover from economic damage caused by Codvod-19 epidemics. The funds were allocated from the 2020 Budget of BIH, based on decisions of the Council of Ministers on allocation of resources for rehabilitation from Covid-19 caused damage.
To make-up for economic loss, the Council of Ministers of BIH allocated total KM 39,747,000.00 in 2020, of which more than KM 37 million was earmarked to responsible Entity, cantonal, and Brčko District of BIH institutions.
Under its decisions from 2020, the Council of Ministers approved severally KM 14,474,000.00, KM 273,000.00, and KM ‘0,000,000.00, which were distributed according to early defined shares to Republika Srpska (37%), the Federation of BIH (61%), with further distribution to the Federation of BIH level (50%) and Cantons (50%), and the Brčko District of BIH (2%). The report includes a funds expenditure part, based on the Council of Ministers decision on funds distribution for rehabilitation from economic loss caused by the Covid-19 epidemics, in total amount of KM 13,000,000.00. The decision refers to the funds distribution to the Hospital Centre of the Sarajevo University in amount of KM 3.500.000,00; University Hospital in Mostar KM in amount of 3,500,000.00; University-Hospital Centre Banja Luka in amount of KM 4,000,000.00, in addition to the Brčko District Health Centre in amount of KM 500,000.00, and Tuzla University Hospital in amount of KM 1,500.000,00.
An additional KM 2,000,000.00 was provided by the Council of Ministers of BIH under a decision to approve a multiannual project “Costs Covering Relating to Agreed-to Arrangements for Provision of Counter-Measures against Covid-19” for 2020-2022, and special purpose programme of the Ministry of Civil Affairs. The unspent special purpose funds were transferred to year 2021 for the same use upon beneficiaries’ demand.
IMPROVEMENT OF E-government SYSTEM
The session adopted the BIH Council of Ministers Secretariat-General report on the e-government system status, which is used by 58 institutions in BIH, relaying fully or partially on e-government services and system.
The report includes recommendations and conclusions for improvement of the e-government system, and stresses a need for capital investments to IT infrastructure from both BIH Institutions Budget and international assistance, so as to improve the digitalisation process, i.e. e-government in the institutions of the Council of Ministers of BIH. The Council of Ministers of BIH Secretariat-General has intensified its communication with foreign donors, among which there are the European Commission, UNDP, UK Embassy in BIH, USAID and GIZ, which would support financially the projects of further development of IT infrastructure and e-government in the BIH Council of Ministers Institutions.
So the Council of Ministers of BIH granted its full support to the Secretariat-General for realisation of the USAID-run project of up-building the existing GSB platform.
CONSENT FOR VOTE BY CITIZENS OF JAPAN IN BIH
Upon a proposal by the Ministry of Foreign Affairs, a consent was given for organisation of vote by citizens of Japan staying in the territory of BIH, on the occasion of elections for the Board of Aldermen of Japan.
The polling will be organised in time period from June 23, 2022 to July 2, 2022 in the Embassy of Japan in Sarajevo, from 9.30 to 17.00 hrs. (end)