Bosnia's Serb region adopts 2023 budget with a 4.4% deficit

Based on a 2023 economic growth forecast of 3.1%, the 5.38 billion Bosnian marka ($2.7 billion) budget projects revenue of 4.14 billion marka, mainly from indirect taxes and welfare contributions. Spending of 4.25 billion marka will mostly cover salaries, which will rise 5%, and pensions and social benefits, which will be increased by 13.5%, Finance Minister Zora Vidovic said.

The outgoing parliament of Bosnia's autonomous Serb Republic on Wednesday adopted a 2023 budget 19.4% bigger than this year's revised budget and foreseeing a 4.4% deficit due to increased spending for vulnerable groups because of high inflation. Based on a 2023 economic growth forecast of 3.1%, the 5.38 billion Bosnian marka ($2.7 billion) budget projects revenue of 4.14 billion marka, mainly from indirect taxes and welfare contributions.

Spending of 4.25 billion marka will mostly cover salaries, which will rise 5%, and pensions and social benefits, which will be increased by 13.5%, Finance Minister Zora Vidovic said. Vidovic said financing is set at 1 billion marka, of which 780 million marka should come from issuing securities on the foreign market, and will be used to cover maturing debt.

Out of 83 deputies, 57 voted at the emergency session - 50 for the budget, two against and 5 abstained. The outgoing government rushed to pass the 2023 budget following an Oct. 2 general election which will see a new government formed.

Bosnia's central government and the government of the Bosniak-Croat Federation, which is Bosnia's other autonomous regions, have not passed budgets for 2023. (1$ = 1.966 Bosnian marka)