INVESTMENT CYCLE SET TO FOLLOW IN SRPSKA

BANJA LUKA, DECEMBER 14 /SRNA/ – Republika Srpska Minister of Finance Zora Vidović announced to SRNA that a major investment cycle will follow in the coming year, including the construction of motorways, investments in the power utility sector, and many other fields.

Vidović says this will be possible thanks to a much more favourable position in all areas of investment compared to the previous two years, when fiscal space was very limited.

“There were strong pressures on Republika Srpska, sanctions, and everything else that accompanied us. It is hard to believe how much the climate toward Republika Srpska has now changed,” Vidović said in her SRNA interview.

She emphasized that the proposed budget framework for next year, amounting to BAM 7.409 billion, is higher by BAM 659 million, or 9.8 percent, compared to this year, and stressed that it was prepared based on situation analysis in Republika Srpska, not on anyone’s wishes.

She underlined that Republika Srpska budget has never been a list of wishes, as everything planned has always been carried out.

Vidović stressed that Republika Srpska is stable, that all obligations from this year’s republican budget have been settled, including debt-related obligations, and that all priority payments defined by the Law on Budget System have been paid.

She noted that salary increases for budget users are planned for next year, but that they will be possible only after the first quarter.

“Salary increases for budget users are planned, but certainly not from January 1, rather after we assess developments in the first quarter. When we see that there is room, then we will increase salaries,” Vidović said.

Vidović added that, regarding taxes and contributions paid by small entrepreneurs, there will be no increase next year in the contribution base, which will result in a reduction of inflows to the budget on that basis.

“When it comes to income and contributions on wages of workers with the lowest qualifications, their minimum wage has been increased to BAM 1,000, but we proposed that BAM 50 be tax-exempt. This means that for a salary of BAM 1,000, the employer pays obligations on an amount of BAM 950, while no contributions are paid on the remaining BAM 50,” Vidović explained.