PM Novalic: We will not be needing any Credit after we get rid of the Grey Economy

While talking about the upcoming political autumn and the announced protests of pensioners and dissatisfaction of agricultural producers, Fadil Novalic, the Prime Minister of the FBiH, stated that the government did not give up on the new Law on PIO (Pension and Disability Insurance), as well as the increase of fuel excise duties and he announced a major fight against the grey economy.

“We did not just announce the projects: we implemented them. After the first two years of the mandate of this government, the Law on PIO was in the procedure as a solution to the problem of pensioners, the debts in agriculture were significantly decreased, and preparations for infrastructure projects were completed. We never gave up in this case as well, and we insisted on the introduction of the road tolls as a certain kind of tax for the construction of motorways and roads, as the main source of resources for such large infrastructure projects,” stated Novalic.

“When it comes to the clearing debt, the position of the Government of the FBiH is well-known, we believe that the money from clearing debt should be directed to infrastructure projects, specifically in the fast-road Lasva-Travnik. Therefore, we are planning to invest this money in projects that will bring new workplaces and improve the economy, instead of spending it.”

“The fights against grey economy is one of my priorities since the very beginning of the mandate. As a businessman, I know all the ways in which employers are trying to achieve some “savings” and the things that drive them to the grey zone. BiH has the highest rate of the grey economy in the region, which amounts to 25.5 % of our GDP. In other words, we lose a quarter of our GDP every year due to unbudgeted income, unbudgeted employment, and unbudgeted payments. Therefore, we do not need any loans or credits: it is enough to find the money that disappears in the grey zone,” noted Novalic.

“This is something that the Government of FBiH is dealing with for a longer period of time. We are already recording an increase in budget revenues, which represents a result of the good work of the competent authorities in their collection.”

“However, the fight against gray economy includes not only strict controls, but, above all, facilitated business operations. For example, the law on income taxes and the law on contributions that reduces the payment procedures of taxes and contributions are currently in the procedure. Sometimes bureaucracy is what pushes employers in the grey zone.”

“The Government will be considering a detailed Action Plan for the fight against the gray economy in order to systematize our work in that field. This is a comprehensive strategy that we have prepared in collaboration with representatives of employers, trade unions, the academic community, as well as our colleagues from the RS and state institutions because the fight against the gray economy requires the cooperation on all levels of government.

(Source: S. Hambo/

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