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SARAJEVO, October 14 (FENA) - The draft law on amendments to the Law on the Allocation of Public Revenues in the Federation of Bosnia and Herzegovina, proposed by delegates Jasmin Duvnjak, Slađan Ilić and Ivo Tadić, was supported by a majority vote at today's session of the House of Peoples of the FBiH Parliament.
Since the Draft Law changes a part of the existing law in this area, the FBiH Government is obliged to propose to the Parliament within two months comprehensive changes towards a transparent, fair and equal distribution of public revenues in the Federation of BiH.
As the first proponent of the Draft Law at today's session, Duvnjak said that it is really a matter of changing only one article of the law, but it is an essential one, and as such it can provoke conflicting arguments since the matter is very sensitive.
The intention of the proposed bill is to take at least the first step towards the revision of the entire system of public revenue distribution, and finally, to lead to the financial stability of the Federation of BiH and its cantons and the balanced regional development of the FBiH.
The aim is also to open a wide public debate on the proposed draft law as an initial step towards more equal treatment of all citizens of the Federation in the distribution of public revenues to their communities since the existing law was drafted in completely different circumstances, and today it seems unrealistic and unfair.
Injustice is quite noticeable in the distribution of revenues, for example to the detriment of the inhabitants of the Tuzla Canton in relation to the inhabitants of the Sarajevo Canton, explained Duvnjak.
This is one of the most important laws in the legal system of the Federation of Bosnia and Herzegovina. Its application over the last ten years has seen an unfair and illogical distribution of public revenues per capita to the cantons.
This anomaly is the most noticeable in the cases of the Tuzla Canton and the Sarajevo Canton, and therefore it has been singled out in the explanation of the bill, said Duvnjak.
If because of the degree of wartime destruction and the consequences of aggression on BiH, and the fact that Sarajevo is the capital of Bosnia and Herzegovina, greater financial support for reconstruction was needed back then, such a function of the existing law has long been fulfilled, so it is high time to distribute revenues in a fairer way and enable a balanced development of the Federation of BiH, Duvnjak, Ilić and Tadić also stated in their written explanation of the proposed bill.
The FBiH Government considers that the proposed changes directly affect the budget of the Sarajevo Canton and lead to jeopardizing the balance of the cantonal budgets established by the existing formula as well as potential deviations in revenue distribution that are not analyzed and accompanied by calculations of an impact on budget execution.
In this regard, the FBiH Government pointed out that it has planned to conduct analyses that should serve to draft a new law on the distribution of public revenues in the Federation of BiH, as well as the drafting of the text of the new law in line with the work program of the Government as well as the Strategy for Public Financial Management Reform for the period 2021-2025.
In order for the Draft Law on Amendments to the Law on Allocation of Public Revenues in the FBiH to be sent for public discussion, it is necessary for it to be supported by the House of Representatives of the FBiH Parliament.
(FENA) S. R.
