VIDOVIĆ: RECORD BAM 705 MILLION ALLOCATED FROM THIS YEAR'S BUDGET FOR INVESTMENTS

BANJA LUKA, JUNE 27 /SRNA/ – Republika Srpska Finance Minister Zora Vidović said in SRNA's podcast that the financial situation in Republika Srpska is stable and that this year's budget revision has secured a record BAM 705 million for investments, the largest amount allocated from the budget for capital projects since Republika Srpska was established.

Vidović noted that the budget revision brought significant changes on the expenditure side, primarily due to increased investments and higher allocations for salaries, pensions, veteran allowances and social welfare payments.

"Compared with the budget we planned for this year, we increased budget investments by BAM 560 million. Total budget investments this year amount to BAM 705 million. This is the largest amount ever allocated from the budget for investments in a single year since Republika Srpska came into existence," Vidović said.

She added that allocations for salaries, pensions, veteran allowances and social welfare payments were simultaneously increased by BAM 436 million.

"When all of that is added together, it amounts to about BAM 1.1 billion," Vidović said.

Speaking about total investments in Republika Srpska, she said that projects worth around BAM 6.6 billion are currently being implemented.

"Republika Srpska has reached a point where it has BAM 6.6 billion worth of investments under way this year. New contracts are being signed every day, and by the end of the year that amount will certainly exceed seven billion BAM," Vidović stressed.

She recalled that previous years had been marked by crises, from the coronavirus pandemic to global economic and political upheavals, but assessed that sanctions had caused the most severe consequences for Republika Srpska.

"Those sanctions were lifted last year, and we are now in a position to launch a very significant investment cycle," Vidović said.

According to her, the Republika Srpska Government has decided to continue providing strong support for investments in the coming years because they have a direct impact on economic growth.

"Investments generate higher gross domestic product, stimulate the economy, employment and overall economic activity. They drive every aspect of life in a country," Vidović said.

She noted that about 60 percent of the approximately BAM 700 million from the budget allocated under this year's investment package has been directed to local communities.

"All local communities that submitted requests for assistance in implementing infrastructure projects received funding. Not all of them received as much as they requested, but they all received support," Vidović said.