Fiscal Surplus in 2007 Amounts to 1, 3% Of The GDP

Consolidated fiscal surplus on BiH level in 2007 amounted to KM 278 million, i.e. 1, 3% of the GDP. The Central Bank of BH (CBBH) published the regular annual statistic data on governmental finances, which include budgets on all levels of authorities, funds of social insurance and all off-budget funds in BH.

Although the fiscal position in 2007 for BiH worsened, because the net surplus was lower almost in double than in 2006, current revenues were bigger than current expenditures and than the net acquisition of regular assets (public investments). Current expenditures amounted to about KM 8, 8 billion and they grew at annual rate of 17%, while the consolidated current expenditures grew at annual rate of 15% and in 2007 they were KM 9, 83 billion.

In spite of emphasized growth of the current consumption, gross operative balance (difference between revenues and expenditures) in nominal terms is almost the same as in 2006, but increased public investments affected the fiscal net surplus to be lower than before. In the sphere of public investments, a significant increase of 53% was recorded and they amounted to KM 746 million.

Total expenditures do not include expenditures which refer to projects funded by foreign donations.

Kemal Kozarić, Governor of the CBBH says that it is obvious that one cannot longer count on positive initial effects, which the introduction of Value Added Tax (VAT) had on the growth of tax incomes, because the tax incomes grew by 12% in 2007, while in 2006 they grew more than 23%. The concerning fact is that the public consumption, including the procurement of regular assets, grew also in the last year and it amounted 45% of GDP.  

After implementation of tax reforms, BiH is slowly reaching its maximum fiscal capacity and future government consumption should be adequately balanced with available revenues, but without further burdening of private sector. 

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