News in English     | 15.12.2020. 13:06 |

Novalić: Budget for 2021 will eliminate effects of pandemic

FENA Alma Zukanović

SARAJEVO, December 15 (FENA) - The Prime Minister of the Federation of Bosnia and Herzegovina, Fadil Novalić, said today that they discussed the most important point at the Government session, and that is the budget for 2021, which should eliminate the impact of the 2020 pandemic.

He pointed out that the budget is a reflection of economic policy, which had to take into account everything that happened in economic and social terms in 2020, which was marked by a pandemic.

“Since this year we noticed all the laws of economic, social and health impact of the pandemic on our society and we have high expectations from the vaccine, so we created the budget for next year,” Novalić explained.

He pointed out that in 2020, 14,000 jobs were lost due to the pandemic, but that at the same time, direct taxes fell by only 0.7 percent, which means that the economic measures that affected direct taxes were effective.

“The health care and pension funds must not suffer, but indirect taxes have fallen by 15.8 percent, which is broad spending, and that creates a certain problem, especially for the lower new authorities,” stated the Federation of BiH prime minister.

He added that the budget was created to prevent the occurrence of a high shortage of indirect taxes and an imperceptible drop in direct taxes.

He emphasized that the budget in the amount of five billion and 481 million KM was created to send 230 million grants to lower levels of government, and that half of those funds should be used for micro and small enterprises.

“In the economic sense, FBiH is still creating 240 million KM in the economy, 150 million KM in the Stabilization Fund, 50 million in employment, 25 million KM in the Guarantee Fund and 15 million KM to encourage taking loans for economic events,” Novalić explained.

He pointed out that two other very important topics were discussed at the session, investing 30 million KM in tourism and 10 million KM in the real sector.

(FENA) L. N.

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