BiH: Consolidated fiscal surplus at BAM 672 million in 2019

BiH: Consolidated fiscal surplus at BAM 672 million in 2019

The 2019 consolidated fiscal surplus at the level of the entire Bosnia and Herzegovina amounts to BAM 672 million, or about 1.9% of Gross Domestic Product (GDP), according to the regular annual government finance statistics published by the Central Bank of Bosnia and Herzegovina (CBBH), which includes budgets at all levels of government, all off-budget funds in BH and road directorates.

Compared to 2018, the fiscal surplus shrank by BAM 65 million, with the fiscal position remaining very stable and reflecting good public finance management. Current expenditures in 2019 amounted to around BAM 13.3 billion and grew at an annual rate of 4.7%, which was followed by an increase in consolidated current revenues at a similar annual rate of 4.4%, amounting in 2019 to BAM 15.0 billion. In total expenditure, the largest share, that of 39%, refers to social benefits, followed by salaries of employees accounting for 28%, while the procurement of goods and services follows with 19%. Total interest payments amounted to BAM 241 million, remaining actually plateaued compared to 2018. Current expenditure does not include expenses related to projects financed by foreign donations.

In the public investment area, a significant increase of 13% was recorded compared to 2018, reaching a five-year high of one billion BAM.

As part of its statistical activities and in partnership with more than 50 reporting units at all levels of government, the CBBH produces statistics in line with the International Monetary Fund (IMF) standards on consolidated government finance in Bosnia and Herzegovina. “These reports are submitted to international institutions that use them to assess the country’s overall fiscal position. In addition, similar statistics based on EU standards (ESA2010 and EDP) have been recently introduced, with the reports monitored and evaluated by Eurostat”, CBBH notes in a press release. /ibna