The Government of FBiH adopted a Document of Framework Budget for the Period 2018 – 2020

The Government of FBiH adopted a Document of Framework Budget for the period 2018 – 2020. According to expectations, the gross domestic product will achieve a real growth of 3.4 % in 2017 and 3.8 % in 2018, and the estimated growth in 2019 and 2020 should amount to 4 % and 4.5 %.

It is expected that the FBiH will achieve continuous growth of export activity from 2017 to 2020, which will be 7.1 % in 2017, and 7.9 % in 2018, 2019 and 2020. In the same period, the increase of imports will be 6.4 % in 2017, while in 2018 they are expected to increase by 6.8 %, while in 2019 and 2020, imports will be increased by 7.2 % and 6.4 %.

Economic activity in BiH, as well as in the FBiH, was increased thanks to the positive international environment and domestic demand, which resulted in the increase of macroeconomic indicators that include GDP, employment, industrial production and intensification of foreign trade exchange.

Considering the planned activities of the Government of the FBiH, it is expected that the total number of employees in the FBiH could reach a growth rate of 2.2 % in the year of 2017, 2.5 % in 2018, 2.5 % in 2019, and 2.3 % in 2020.

According to data by the Federal Bureau of Statistics, the number of registered unemployed persons was decreased by 3.1 % in the year of 2016, in comparison to 2015. In the year of 2017 is expected decrease by 2.8 %, in 2018 by 2.9 %, and in 2019 and 2020 by 3 and 3.5 %.

The Government of the FBiH, with the aim of reducing unemployment and improving the business environment, is planning to use all available instruments for higher public revenue collection. By using tax policies and greater involvement of tax and inspection bodies, it is possible to achieve a more significant collection of budget revenues.

With the Regulation on employment promotion by the Government of FBiH, which started in 2016, significant results in reducing unemployment were achieved. Therefore, it supported the initiative to provide funds for a Project Support Grant in the amount of 50 million EUR, of which 29,447,500 EUR to the FBiH, through taking a loan from the World Bank – International Bank for Reconstruction and Development.

This project is related to the scope of work of the Ministry of Labor and Social Policy of the FBiH and it will be implemented in the period 2017-2021.

The project has two specific aims: to increase formal employment in the private sector through programs for different categories of unemployed and improvement of employment mediation services that employment services provide to unemployed persons and employers. Employment of more than 37,000 people is planned in BiH with the implementation of this project, out of which almost 21,000 people from the FBiH.

Programs include salary subsidies, training through work, as well as self-employment of people who are planning to start a small business. All programs will be revised on the basis of annual employment results and all economic sectors will be included in this project.

(Source: Er. M./Klix.ba)

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