BH Fiscal Surplus in 2006 was 3% of GDP

The total fiscal surplus in BH in 2006, including budgets of governments and off-budget funds, was KM 557 million, i.e. 3% of GDP at BH level. The Central Bank of Bosnia and Herzegovina (CBBH) has published regular annual statistical data on Government Finance which cover budgets at all levels of authority, all off- budget funds in BH and Administration for Roads.

Current expenditures amounted to around KM 7, 45 billion, which is by 19% higher than more then in 2005. These expenditures do not include expenditures which are related to projects financed by foreign donations. The highest growth of expenditures (76%) was recorded with the state institutions, which is the consequence of transfer of authority from the Entity level, while consolidated expenditures in BH Federation (FBH) increased by 15%, and by 21% in Republika Srpska (RS). At the same time, consolidated income in BH were KM 8, 43 billion, and they were by 21% higher compared with 2005.

Consolidated fiscal surplus was recorded at the level of both Entities which shows that management of fiscal policy was harmonised. Budgets of FBH, RS, and consolidated cantons recorded significant surpluses, which was also the case with consolidated balance of municipalities in FBH, while only the balance of municipalities in RS was negative.

The CBBH Governor Kemal Kozarić stressed that despite the large increase in fiscal expenditures, the overall fiscal position has not worsened and that no debts accumulated, which continued the process of consolidation of public finance from the previous years. Still the concerning fact is that the public spending grew faster a the total growth of the economy, so the relative reduction of public spending compared to the GDP has not occurred.

The CBBH has, as a part of its statistical assignments, as well as through cooperation with 42 reporting units, successfully produces reliable statistics harmonized with international standards on Government Finance Statistics in BH, which represents the basis for monitoring and implementation of public spending policies.

Further efforts will be invested on widening of the scope and timeliness of this important statistics.

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