MINIĆ: BUDGET REBALANCE REFLECTS RESPONSIBLE GOVERNMENT POLICY

BANJA LUKA, JULY 8 /SRNA/ – Republika Srpska Prime Minister Savo Minić said the revised republic budget reflects the government's responsible fiscal policy, which includes increasing the investment cycle.

Minić said Republika Srpska is expected to reach, and possibly exceed, BAM 7.4 billion in investments this year.

"That is something we could once only dream about, especially when it comes to increased allocations for veterans' categories, pensioners, public-sector salaries and support for families that need it," Minić pointed out.

He noted that a significant share of those investments is being directed to local communities based on their priorities, which will further strengthen the impact of the investment program.

"Most of the investments are focused on expanding energy capacity and building roads and motorways. These are projects that have already proven to bring benefits both to the local communities where they are implemented and to Republika Srpska as a whole," Minić told RTRS.

Speaking about investments in the energy sector, Minić said that with the introduction of the Carbon Border Adjustment Mechanism /CBAM/, the Ugljevik and Gacko coal mines and thermal power plants will be dedicated exclusively to meeting domestic energy demand.

He said the investments include the construction of hydropower, solar and wind power facilities in line with current standards, as well as upgrades to existing energy infrastructure.

Minić also stressed that debt and over-indebtedness are two different concepts, noting that Republika Srpska continues to meet all of its financial obligations on time.

"Only those who are solvent can borrow. One of our most recent borrowings was on the international financial market, where it is impossible to misrepresent your financial position. You must prove that you are solvent and capable of repaying your debt," Minić explained.

According to Minić, claims that Republika Srpska is over-indebted were invented by the opposition because it had no other political arguments.

"Our debt level is below the limits prescribed by the relevant rules and well below the levels seen in neighboring countries, so there is no reason for concern," Minić said.

Minić added that the government is working to establish a comprehensive support system and introduce additional measures to assist the most vulnerable groups, including pensioners, large families and young married couples.

"In this way, we can encourage people to remain here and provide them with the conditions for a decent life," Minić stated.

Commenting on the economy, Minić pointed to positive indicators, noting that this year's profits had reached BAM 3.5 billion, an increase of 30 percent compared with the previous year.

"However, some sectors of the economy, particularly manufacturing, are facing difficulties due to factors beyond our control. We have therefore sought ways to support them so they can retain their workforce," Minić said.

Regarding agriculture, Minić expressed satisfaction after seeing first-hand this year's wheat and barley harvest, describing both the yields and quality as very good. He added that vegetable and fruit producers were also reporting a successful season.

Minić stressed that while the government cannot influence purchase prices for agricultural products, it seeks to support producers through subsidies, co-financing for machinery and seed purchases and other assistance measures.