Council of Ministers Holds Its 9thSession

2014 Budget Execution Report and 2015-2017 Budget Projection 

The Council of Ministers of BIH, upon a proposal of the Ministry of Finance and Treasury of BIH, adopted a Framework Budget Document of the Institutions of Bosnia and Herzegovina for 2015-2017 period of time. The document will be published at the web site of the Ministry of Finance and Treasury.

The 2015-2017 Framework Budget Document was developed based on the adopted Global Framework of Fiscal Balance and Policies in BIH for the same period, which defined KM 950,000,000 worth framework for each year and drawing from the UINO Single Account  in amount of KM 750,000,000.

The 2015 Budget, as well as 2015-3017 Framework Projections, are included into this Framework Budget Document, as a real and consistent set of presumptions to facilitate the Council of Ministers take well-informed decisions (based on a three-year mid-term plan) on issues having budget implications. The Purpose of the Framework Budget Document is to facilitate priority policies and spending programme planning in consistence with the approved mid-term macro-economic and fiscal framework.

 

The Council of Ministers of BIH adopted a Budget Execution Report of Bosnia and Herzegovina Institutions and International Obligations of Bosnia and Herzegovina for 2014.

The Ministry of Finance and Treasury will provide the Report to the Presidency and Parliamentarian Assembly of Bosnia and Herzegovina.

The total revenues and financial support to the BIH Institutions realised in 2014 were KM 917,636,014 or 106% in relation to revenues planned under the 2014 Budget. This good percentage of the realised revenues came primarily as a result of the UMTS licence collected funds in amount of KM 17,602,470 and current supports – cash grants made in 2014 in amount of KM 25.2 million. The good total revenue results were certainly affected by the Central Bank of BIH revenues and profits, made in amount of KM 18.05 million or 8.05 million more than planned.

The revenue and financial support amounts were added to KM 33,614,375 KM of finances and receivables from loan proceeds of the Council of Europe Development Bank (CEB) for construction of the state prison in amount of KM 17,211,304, receivables from sales of fixed assets in amount of KM 693.799, succession revenues in amount of KM 1,098,272, in addition to KM 14.611.000 surplus funds from previous years and revenues, other receivables and finances available to the BIH Institutions in total amount of KM 1,005,259 or 106 % of the planned KM 950.000.000.

Total realised budget expenditures of the BIH Institutions in 2014 were KM 906,558,966 and 1.9 million or 0.2 per cent higher than the year before. Having regard of the revenue side, the Institutions of Bosnia and Herzegovina met all their obligations agreed under the Letter of Intent for realisation of the Stand-By Arrangement with the IMF.

The provision of the foreign debt servicing in January 1, 2014 – December 31, 2014 was in amount of KM 763,586,208.71, and total amount spent for these purposes was KM 760,023,879.38 (KM 494,292,886.63 for FBIH, KM 261,062,506.61 for RS, KM 1,517,132.33 for the Brčko District, and KM 4,051,353.81 for the BIH State Institutions).

The remaining unspent funds in amount of KM 2,662,329.33 were set aside to secure regular servicing of liabilities due in January 2015.

 

 

 

Coordination Team Appointed

 

The Council of Ministers took a decision on appointing a BIH Coordination Mechanism Documents Development Team.

The Team would be comprised of representatives of the Office of Chairman of the Council of Ministers, Ministry of Finance and Treasury, Ministry of Foreign Trade and Economic Relations, and Directorate for European Integrations. Governments of the Federation of BIH, Republika Srpska and Brčko District will appoint one member each into the Team, in addition to a coordinating cantonal representative from the Federation of BIH.

The Team is be responsible to develop, within 30 days as at adoption of the decision, a proposal document of the BH Coordination Mechanism in the European integrations process, and to communicate it and report tis activities to the Chairman of the Council of Ministers regularly, who would report it further to the Council of Ministers.

 

The Council of Ministers of BIH, upon a proposal of the Ministry of Security, took a decision on identifying border crossings in BIH where visa issuance would be arranged. The decision prescribes visa issuing to foreign citizens entering Bosnia and Herzegovina at the border crossings of Orašje, Bosanska Gradiška/Gradiška, Izačić, Kamensko, Gorica, Doljani, Bijača, Bosanski Brod/Brod, Rača, Karakaj, Hum, Klobuk, Sarajevo Airport, Banjaluka Airport, Tuzla Airport and Mostar Airport.

The decision was made based on statistical data on frequency of movement of foreigners across certain border crossings, and based on the technical prerequisites in place for necessary checks in the visa issuance process.

 

The Council of Ministers adopted an Activity Report on implementation of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Croatia on construction of an inter-state bridge over the Sava River near Svilaj and connecting bordering road sections at the VC Corridor.

The Ministry of Transport and Communications of Bosnia and Herzegovina will start its part of activities on construction, in compliance with the Agreement, and will appoint BIH members into a public procurement joint committee for selection of the most favourable bidder for works.

The selection procedure for the best bidder for works will comply with requests of banks, seeking the EU procurement rules to be applied, which means the application of regulations of the Republic of Croatia, as the EU member state.

Bosnia and Herzegovina has secured financial resources for the bridge construction from the BIH Budget, while the Republic of Croatia will secure its share in project expenditures from EIB loans. Works on the construction of connecting roads on both sides (BIH and Croatia) are on-going, with both sides having solved their respective property-legal issues, as a precondition for the start of the works.

 

The Council of  Ministers, on proposal of the Ministry for Human Rights and Refugees, took a decision to approve KM 100,000 from the 2015 budget current reserves for assistance to the population of Nepal for overcoming the aftermaths of a catastrophic earthquake. The funds will be directed for reconstruction of a school in the Nepali capital.

 

The Council of Ministers of BIH, upon a proposal of the Ministry for Human Rights and Refugees, took a decision to adopt an Action Plan for Children in Bosnia and Herzegovina.

The aim of the third Action Plan, for Children for 2015-2018 is to continue activities launched in 2202 in BIH for the implementation of the UN Convention on Rights of Child  and its two Facultative Protocols ,in addition to specially defined decisions of the Committee for Rights of Child.

The basis for development of the Action Plan was specific recommendations of the Committee for Rights of Child and activities targeting areas of the poorest implementation of the previous Action Plan. Also, documents of relevant UN and European bodies were taken into consideration concerning protection of rights of children and their families.

The Action Plan envisages betterment of BIH legislation, policies and strategies, coordination and reporting to advance the implementation of comprehensive measures from the Convention on Rights of Child, to improve the ambience for implementation of governing principles of the Convention relating to non-.discrimination, child’s best interest and consideration of child’s opinion. The Plan provides for securing of conditions for a full application of civil rights and freedom of children, establishment of rights and freedom specific protection mechanisms, improvement of child protection mechanisms and awareness raising for prevention and suppression of violence against children, as well as building of capacities of families and overall social environment to allow for implementation of social and health care and education targeting implementation of rights of those children deprived of family protection. The Action Plan secures application of rights protection mechanism for children with disabilities, in addition to overall improvement of children and vulnerable groups’ living standard, with a special attention paid to children from refugee and migrant groups, homeless, delinquent and other children.

The Council for Children of Bosnia and Herzegovina is tasked to report to the Council of Ministers of BIH annually on the Action Plan implementation, including on proposed measures for its implementation improvement and possible amendments and supplements to the document.

 

The Council of Ministers, on a proposal of the Ministry of Finance and Treasury of BIH, took a decision to approve issuing of a state guarantee for the Loan Contact for Central Heating Project in Prijedor between the Heating Utility Prijedor and European Bank for Reconstruction and Development.

According to the Decision, BIH will issue a state guarantee to the European Bank for Reconstruction and Development under the Loan Contract, concluded between the Heating Utility in Prijedor and EBRD in amount of EUR 7,000,000 with the belonging Contract costs.

 

The Council of Ministers of BIH considered and adopted Information of the Ministry of Civil Affairs of BIH on implementation of a Framework Law on Pre-school Education and in Bosnia and Herzegovina, and made the following conclusions:

The Council of Ministers considers that the obligation of harmonisation, i.e. development of separate pre-school education legislation based on the Framework Law on Pre-School Education in Bosnia and Herzegovina was neither made in full, nor within defined deadlines.

The Council of Ministers of BIH urges competent education authorities of Srenjebosanski, Hercegovačko-Neretvanski and Zapadnohercegovački Cantons to develop their own pre-school education legislation as early as possible, i.e. to finalise development and adoption of relevant pre-school laws and by-laws necessary for regulation of the pre-school level education.

The Council of Ministers of BIH urges the Government and responsible Ministry of the Unsko-Sanski Canon to create conditions without delay for taking effect of the Law on Pre-School Education of the Unsko-Sanski Canton, published in the “Official Gazette of Unsko-Sanski Canton”, No. 8/2010, of June 10, 2010, and start realisation of the law-prescribed commitments.

The Council of Ministers of BIH urges responsible education authorities, including the Agency for pre-School, Primary and Secondary Education to cooperate with the Ministry of Civil Affairs of BIH and in order to intensify development of a new strategic document for pre-school education in Bosnia and Herzegovina, pursuant to the Council of Ministers’ conclusion from its 43^rd session, of March 26, 2013 (“Official Gazette of BIH”, No. 32/13, of April 29, 2013).

The Council of Ministers of BIH urges responsible education authorities to secure, as early as possible and in compliance with the Framework Law on Pre-School Education in Bosnia and Herzegovina, conditions for implementation of the mandatory pre-school education programme in the year immediately preceding the beginning of school education.

The Council of Ministers of BIH expects the Agency for Pre-School, Primary and Secondary Education in BIH to continue meeting its obligations stemming from the Framework Law on Pre-School Education in BIH.

The Ministry of Civil Affairs of Bosnia and Herzegovina is responsible to report on the implementation of the Framework Law on Pre-School Education in BIH and of related conclusions to competent Entity and cantonal Ministries and Parliaments, as well as the Education Department and Assembly of the Brčko District of BIH, including the Agency for pre-School, Primary and Secondary Education in BIH.

 

The Council of Ministers of BIH considered and adopted Information of the Ministry of Justice of BIH on adjudicated cases for criminal deeds provided for in Article 411 of the Criminal Procedure Code of Bosnia and Herzegovina for 2014.

The central data base on adjudicated cases for criminal deeds in 2001-2014 indicates 1,590 verdicts were made, with 460 verdicts only taken in 2014. As in previous years, most of them were for criminal deeds related to narcotics, total 372 verdicts. There were 39 verdicts for forgery, and two verdicts for solicitation, and one verdict each for hijacking, child or under-aged abuse for pornography, money laundering and international incitement to prostitution.

Upon the expiry of each calendar year, the Ministry of Justice of BIH will provide to the Council of Ministers of BIH a review and analysis of adjudicated cases, based of central data base information. Pursuant to the Law on Prevention and Suppression of Trade with Narcotics, the Ministry of Security will be regularly up-dated on verdicts and perpetrators of criminal acts of illicit production, processing and trade with narcotics and poisons, and will further inform the High Judicial and prosecutorial Council of BIH for the purpose of comparison with data it disposes of, while the High Judicial and Prosecutorial Council is responsible to warn courts at their obligations under the Criminal Procedure Code Article 411.

 

The Council of Ministers of BIH defined a Proposal Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Belarus on visa lifting for holders of diplomatic and service passports.

The Ministry of Foreign Affairs will provide the Proposal Agreement to the Presidency of BH for further procedure, with a proposal for Foreign Minister Igor Crnadak as the BIH signatory.

The Agreement regulates non-visa regime and stay for holders of diplomatic and service passports appointed for service in diplomatic missions and consular offices or international organisations in the territory of the other state during the term of their mandate.

The agreed-to text Agreement will be positively affect the improvement of friendly relations between the two countries through facilitating of travel and enabling enhancement of economic and cultural cooperation.

 

The Council of Ministers of BIH took note of information of the Directorate for European Integrations on an obligation to set-up of joint BIH-EU bodies for implementation of the Stabilisation and Accession Agreement Chapter X “Institutional, General and Final Provisions“.

The Directorate will, in a direct communication with the European Commission, define planned dynamics of meetings of the Council for Stabilisation and Accession and Board for Stabilisation and Accession.

 

The Council of Ministers of BIH took note of an Annual Report of the Ministry of Foreign Trade and Economic Relations on Agriculture, Food and Rural Development in Bosnia and Herzegovina for 2014.

This comprehensive document indicates that the year 2014 will be remembered for large-scale direct and indirect damage and losses caused by May floods, valued at KM 360 million. The agriculture in 2014 was featured by negative trends for start-ups, i.e. a decrease of cultivated areas for 16 ha or 3%, while unfarmed land was increased for about a thousand ha or 6,3& in relation to year 2013. Unfavourable weather conditions affected the production of primary agricultural products, both in terms of fulfilment of the planed sowing and the expected yields. In addition to the negative output in production, incentives to agriculture and rural development reached KM 139,1 million or 4 per cent lower compared to the year before.

 

The Council of Ministers of BIH adopted a report of the Ministry of Foreign Trade and Economic Relations of BIH on international assistance to BIH agriculture, food and rural development sector in 2014.

Major donors to this sector in BIH are the EU, Japan, Netherlands, Sweden, Check Republic, Germany, USA, Switzerland and UN. Many EU member countries extend targeted assistance to specific sectors. International financial institutions, like IFAD and the World Bank, extend agricultural development loans.

The Report suggests that necessary joint action and support activities should be taken to improve business environment and standard reaching for placement of agricultural products to the European market and for competitiveness building, especially for milk and milk products, meat and fruit and vegetables.

Recommendations for directing donor assistance indicate a support to fulfilment of criteria for EU membership in the areas of agriculture, rural development and food safety, veterinary and phytosanitary policy, as well as continued recovery from natural disaster aftermaths and their prevention.

 

The Council of Ministers of BIH adopted a relevant Work Group action report with analysis of effects of entry of foreign ships into the BIH coastal part of the Adriatic Sea, with recommendations prepared by the Ministry of Communications and Transport in cooperation with competent institutions in BIH.

The State-level Ministries of Communications and Transport, Security, and Foreign Tarde and Economic Relations will coordinate realisation of the recommendation.

The recommendations contain legal grounds in the context of legislation, foreign policy, security, economic, environmental and defence aspects of entry of foreign ships into the BIH coastal part of the Adriatic Sea.

 

The Council of Ministers of BIH took note of the Ministry of Finance and Treasury Report “Review of Donor Activities in 2013”.

The Ministry of Finance and Treasury is tasked to continue promotion of cooperation with domestic institutions, members of the Forum for Donor Coordination, and other donors operating in BIH, for as effective as possible use of official development assistance (ODA), subject to BIH priorities and principles of the Paris Declaration of Effective Assistance.

The Ministry of Finance and Treasury should continue activities on inclusion of as many as possible donors into the Forum for Donor Coordination for the reason of having a comprehensive and transparent insight into the use of ODA finds in BIH.

Members of the Forum for Donor Coordination in BIH have extended total EUR 699.83 million, out of which EUR 198.85 million of grant funds, and EUR 500.98 million for loan funds.

Major creditors were the European Bank for Reconstruction and Development, European Investment Bank, International Financial Corporation and World Bank, while the EU, USA/USAID, Sweden/SIDA, Germany, UNDP and Norway secure the most of grant funds. Major percentage of assistance was doctored for private sector development (29%), transport and energy infrastructure development (29%), and environment and climate change sector (24%).

 

The Council of Ministers of BIH adopted an analysis of amendment of Framework Law on High Education in Bosnia and Herzegovina.

The Council of Ministers of BIH expects the competent education authorities to take needed measures as soon as possible to identify all possible mismatches and then start preparation of amendments of their respective law provisions inconsistent with the Framework Law on High Education in BIH.

The Ministry of Civil Affairs is tasked to provide the analysis with related conclusions to: the ministry of Education and Culture of Republika Srpska; Ministry of Education, Science, Culture and Sports of the Tuzla Canton; Ministry of Education, Science, Culture and Sports of the Unsko-Sanski Canton; Ministry of Education, Science, Culture and Sports of the Hecegovačko-Neretvanski Canton; Ministry for Education, Science, Culture and Sports of the Zeničko-Dobojski Canton; cantonal Parliaments;, National Assembly of Republika Srpska; and Rectors Conference of Bosnia and Herzegovina.

 

The Council of Ministers of BIH took separate decisions on admitting to the citizenship of Bosnia and Herzegovina of Selvija Škriljej, Gabrijel Kajtazi, Goran Milić, Josip Čolić, Umut Bariş Dönmez, Nikola Jelisić, and Marko Tarabochia.

 

The Council of Ministers of BIH, upon a proposal of the Ministry for Human Rights and Refugees of BIH took a Decision on amendment of the decision establishing a Joint Committee for implementation of the Basic Agreement between Bosnia and Herzegovina and the Holy See and Additional Protocol to the Basic Agreement.

The decision appoints, on behalf of BIH, Minister for Human Rights and Refugees Semiha Borovac, Deputy Minister of Foreign Affairs Josip Brkić, Minister of Civil Affairs Adil Osmanović, Head of Office of Minister of Finance and Treasury Saša Marić, Secretary of the Ministry of Jsutice Željko Bogut, and Deputy Minister of Civil Affairs. Đorđe Miličević.