Region: Europe and Central Asia
Country: Bosnia and Herzegovina
Keywords: Knowledge Lab, Legal Framework
Document(s):
Document Summary:
Following the request of the European Commission from 2015, the relevant institutions in Bosnia and Herzegovina have prepared a 2016-2018 Economic Reform Programme (ERP). This year's programme is the second one to be submitted to the European Commission. ERP, on the one hand, contains a medium-term macroeconomic and fiscal policy framework, including the fiscal measures as well, and on the other hand, a comprehensive programme of structural reforms aimed at improving the growth and competitiveness of the country.
Document Details:
In order to implement targeted policy guidelines adopted at the Economic and Financial Dialogue in May 2015, Republika Srpska particularly points out that it has improved its framework for budget management, by adopting the Law on Fiscal Responsibility in Republika Srpska, which set the fiscal rules and measures, and established the Fiscal Council of Republika Srpska. At the same time, through the 2016 budget, we have tried to improve the public expenditure planning system, which will create fiscal space for capital investments in the coming period. Also, we actively pursue the establishment of the Registry of Para-Fiscal Charges in order to disburden the economy. By adopting the new Law on Labour, we have openned the process of the labour market reform, while, in 2016, we expect to take further steps toward reducing the tax burden on labour, at the same time providing for realistic and reliable sources that will cover the loss of revenues to extra budgetary funds. With technical assistance of the IMF, we prepare a new legislative framework for the banking sector of Republika Srpska.
The Federation of BiH has taken certain actions to fulfil the Brussel recommendations with regards to reducing the cost of public expenditure – wages and material costs; then the Fiscal Coordination Committee started to function; the first analysis of para-fiscal charges was carried out; regulations to support liquidity of SMEs are in the procedure; and the Law on Labour was adopted. In the coming period, particular attention will be focused on control of budget expenditures; reducing the labour price; regulation of business environment and the adoption of regulations providing for establishment of registry of non-contributory cash benefit users.
Updated: March 7, 2022