prijava
SARAJEVO, April 17 (FENA) - At today's session of the FBiH Civil Protection Crisis Staff, all the orders passed earlier have been extended until April 30, following all analyses of the Crisis Staff of the Ministry of Health of the Federation of Bosnia and Herzegovina, Finance Minister and Crisis Staff Commander Jelka Milićević confirmed today.
She stressed that the distribution of medical, specialized and other equipment under the existing rules has continued in a very transparent manner.
Speaking about the budget revision adopted by the Government of the Federation of BiH, she said that it reflects the commitment of the FBiH Government in response to the health and economic situation caused by the coronavirus pandemic.
"There is a decline in revenues and there is a need for a budget response to disruptions and challenges, and we sought solutions and macroeconomic projections and indicators in the world because we are a small, open economy that is not immune to events in the immediate and wider economic sphere," said Milićević.
According to projections, private consumption is expected to decline as a result of job loss, wage cuts and reduced inflow of remittances from abroad, and public spending is the only one that keeps the system afloat, which is why all budget projections are made on that basis.
As she said, 20 percent of GDP is investments and there is a projection that there will be a drastic fall. Milićević expressed hope that the fall would be at the level of five percent and not higher.
Tax revenues are expected to fall by about 15 percent which Milićević says it is even optimistic, and VAT revenue cut of 150 million KM is also expected.
"Also, because of job loss and wage cuts, we will have 315 million KM less in the Pension and Disability Insurance, which means that the payment of pensions will be at stake, but the Government is determined that this should not happen because we guarantee the payment of pensions at the level before declaring the state of emergency," said Minister Milićević.
Speaking about subsidizing minimum wage contributions, she explained that this would need to be done for around 350,000 employees, and other aid modalities for those at risk are being considered. The FBiH government here expects a contribution from lower levels of government.
With all the reserves that have been made in the budget, the Federation of BiH will borrow 790 million KM. The planned indebtedness this year was 585 million, and now it will be 1,375,000,000 with loans, but only for the rehabilitation of the state of health care and economy.
"The FBiH government has done its budget revision, and so should the cantons and municipalities. We have provided the cantons with the same treatment and access to resources as the Federation of BiH has divided responsibilities and the loan, but it is a five-year loan with a grace period of three years and an interest rate of 1.5 percent and we will pay it back together,” Milićević explained.
(FENA) S. R.
