Sjednice
Council of Ministers of Bosnia and Herzegovina Holds Its 65th Session
11/27/2024
The Council of Ministers of BIH adopted two the Ministry of Defence-proposed decisions, securing KM 16,740,000 for a multi-annual project of helicopters procurement for the Ministry of Defence and Armed Forces of Bosnia and Herzegovina.
A Decision on a status of Decision on multi-annual project of 2013-2014 helicopter overhaul invalidates the latter, and funds in amount of KM 7,480,000 were earmarked to the multi-annual helicopters’ procurement project for the Ministry of Defence and Armed Forces of Bosnia and Herzegovina.
A decision was taken on Amendments and Supplements to Decision on Multi-Annual Helicopter Procurement Projects for the Ministry of Defence and Armed Forces of Bosnia and Herzegovina.
This way, a reshuffling of resources provided under the 2024 Law on Budget of Institutions of Bosnia and Herzegovina and International Obligations of BIH secured KM 9,260,000. This was made possible by savings made through several budget positions, and resulting funds will be used for procurement of multipurpose helicopters for fire extinguishing.
SALARY BASE COMFORMED WITH LAW
The Council of Ministers of BIH took the Ministry of Finance an treasury-proposed Decision on level of base for salary accounting for 2025, which should amount to KM 631.50, while the previous one was KM 600 in 2024.
The Law on Salaries and Reimbursements-stemmed obligation is met, defining the base salary level at 50% average net monthly salary in Bosnia and Herzegovina, shown at annual level for the calendar year two fiscal years preceding the year when the subject base salary will start to be applied. The Statistics Agency of BIH published a data that the average net monthly salary in Bosnia and Herzegovina in 2023 was KM 1,263.
The Decision should start to be applied from January 1 to December 31, 2025, and in case the Budget is not adopted for the next fiscal year, the new base salary will start to be implemented a month after the date of the Budget adoption.
PROPSAL AGREEMENT ON SOCIAL SECURITY BETWEEN BIH AND MONTENEGRO
The Council of Ministers of BIH adopted a Negotiations Report and defined a Proposal Agreement between Bosnia and Herzegovina and Montenegro on Social Insurance, with a belonging Administrative Agreement.
According ot the Negotiations Report, the contracting parties’ delegations held six rounds of negotiations and agreed text Agreement between Bosnia and Herzegovina and Montenegro on social Insurance and text Administrative Agreement for implementation thereof.
the Ministry of Civil Affairs should forward the Negotiations Report and Proposal Agreement to the BIH Presidency for further procedure, with a proposal for the Minister of Civil Affairs as the BIH signatory thereof.
PREPARATORY ACTIVITIES FOR INTRODUCTION OF 5G NETWORK IN BOSNIA AND HEREZGOVINA
The Council of Ministers of BIH adopted a piece of information by the Ministry of Communications and Transport on required preparatory activities for implementation of mobile 5G network in Bosnia and Herzegovina.
The Communications Regulatory Agency (RAK), Identification Documents, Evidence and Data Exchange Agency (IDDEEA) and Ministry of Security should consider and agree distribution of radiofrequency spectrum 3.5 GHz and 26 GHz, for the aim of freeing these parts of spectrum for the needs of introduction of 5G mobile networks.
Based on their agreement, the RAK, IDDEEA and Ministry of Security should draw a Distribution of Radiofrequency Spectrum 3.5 GHz and 26 GHz Project with detailed Activity Plan, including holders of activities, specified equipment, financial resources and their sources, and deadlines for implementation of activities, for the needs of securing preconditions for 5G networks implementation.
The Ministry of Communications and Transport should develop a proposal decision, based on Radiofrequency 3.5GHz and 26 GHz Spectrum Distribution Project, on securing missing finances for the Project implementation, and provide it to the Council of Ministers of BIH.
DECREASED BIH PUBLIC DEBT LAST YEAR
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled piece of information on the state of public indebtedness of Bosnia and Herzegovina, conclusive with Dec. 31, 2023, when it reached KM 12 billion and 951.72 million and was decreased for KM 65.05 million relative to year 2022.
The foreign debt amounted KM 8 billion and 981 million or 68.88%, and internal debt was KM 4 billion and 30.46 million or 31.12% of public indebtedness.
The BIH public debt share in GDP reached 26.40% at the ned of last year.
As to the total public indebtedness distribution, the Federation of Bosnia and Herzegovina accounts for 50.97%, Republika Srpska for 48.21%, Institutions of BIH 0.47&, and the Brčko District of BIH for 0.35%.
The BIH foreign debt servicing last year amounted to KM 1 billion and 685 million, of which principal amount was 1 billion and 402.54 million, and interest was Km 282.96 million.
An Analysis of Bosnia and Herzegovina public debt sustainability 2023-2026, prepared by he Ministry of Finance and Treasury in accordance with the International Monetary Fund-developed methodology.
The Analysis, according to a base scenario for 2023-2026, points that Bosnia and Herzegovina is a country with midterm sustainable debt, and the projected real growth amounts from 2.0 % to 3.4%, with 2.0% to 4.4% inflation rate, -0.8% to 0.8% primary balance, and effective interest rate of 2.8% to 5.0%.
The Analysis of BIH Public Debt Sustainability helps effective management of public finances and macroeconomic stability, showing effects and consequences of public indebtedness.
TRADITIONAL CHRISTMAS RECEPTION
The Council of Ministers of BIH took a decision to approve funds from current reserves of the Budget of Institutions of Bosnia and Herzegovina and International Obligations of BIH for 2024.
Under the Decision, KM 30,000 was approved to the General Affairs Service of BIH Institutions for organisation of a traditional reception on the occasion of Christmas holidays, to take place in the BIH Parliamentary Assembly building, on December 19, 2024.
REALISATION OF BIH EUROPEAN INTEGRATIONS SUPPORT PROJECTS
The Council of Ministers of BIH adopted a Report on Implementation of the Directorate for European Integrations Multiannual Project “2015-2017 Support to European Integrations Process of Bosnia and Herzegovina”, worth KM 1 million.
Within the project, the Directorate for European Integrations arranged sending answers to questions from the European Committee Questionnaire, answering to additional questions from the EC Questionnaire, in addition to drafting an Integration Programme of Bosnia and Herzegovina to the European Union. the activities included, among other things, translation of answers to the Questionnaire after published call, and development and up-grading of IT system for support to the European integrations.
The Directorate for European Integrations multiannual project “2015-2017 Support to European Integrations Process of Bosnia and Herzegovina” was completed in early March 2024, together with completion of an Integration Programme working version, provided to the European Commission for comments, in line with the Stabilisation and Accession Agreement.
Non-realised Multiannual Project funds in total amount of KM 5,435.26 will be transferred to the Single Treasury Account of the Ministry of Finance and Treasury of Bosnia and Herzegovina.
2023 BIH REPORT ON AGRICULTURE, FOOD AND RURAL DEVELOPMENT
The Council of Ministers of BIH considered an Annual Report on Agriculture, Food and Rural Development of Bosnia and Herzegovina for 2023, to be provided by the Ministry of Foreign Trade and Economic Relations to the BIH Parliamentarian Assembly for adoption.
The Report presents a comprehensive document showing the situation in agriculture-food sector and implemented measures under agriculture policy of BIH, and it also includes the level of cash resources earmarked as support to productivity and competence increase of domestic agriculture, as well as relevant activities implemented in the context of European integrations and international cooperation.
According to the Report, the most important implemented agriculture sector activity in 2023 was the adoption of the Law on organisation of vine market in Bosnia and Herzegovina, which enables establishment of vineyard-vine register, as a foundation for the sector revival and further development in Bosnia and Herzegovina.
Conclusive with December 2023, activities were completed on development of a new 2023-2027 rural development strategic framework, provided by the Ministry of Foreign Trade and Economic Relations to competent institutions for opinion, following which the framework document will be sent for adoption to both the Council of Ministers and Parliamentarian Assembly of BIH.
PIECE OF INFORMATION ADOPTED ON REVISED REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN PREFERRENTIAL RULES ON ORIGIN
The Council of Ministers of Bosnia and Herzegovina adopted a piece of information from the Ministry of Foreign Trade and Economic Relations on a Revised Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin for the aim of introduction of the Revised Regional Convention on Pan-Euro-Mediterranean Preferential Rules on Origin into Free Trade Agreements, concluded by Bosnia and Herzegovina, and took subsequently appropriate conclusions for the aim of protection of interest of BIH businesses.
It is about an earlier concluded on Stabilisation and Accession Agreement among European Communities and their member countries, on one side, and Bosnia and Herzegovina, on the other side, Central European Free Trade Agreement – CEFTA 2006, Free Trade Agreement with EFTA countries, and Free Trade Agreement with the Republic of Turkie.
The Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina should take needed actions so that the revised Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin are published in the “Official Gazette of Bosnia and Herzegovina”.
Minister of Foreign Trade and Economic Relations Staša Košarac will represent Bosnia and Herzegovina at the PEM Joint Board meeting.
The Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina should complete internal actions as soon as possible for the purpose of applying transitional arrangements from January 1, 2025. (end)
Link tor Photos:
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