Are you wondering where all the money is going? The Government of the Federation started 2023 with a surplus of 200 million BAM but ended with a deficit of over half a billion. The Audit Office found that significant deviations in planned revenues and expenditures caused the deficit to balloon to 536 million 377 thousand BAM in just one year.
The Ministry of Finance blames multiple factors for the deficit including unpaid obligations from JP AC FBiH and a lack of dividends from JP BH Telecom. The adoption of Amendments to the Law on Social Protection also added to the expenditure side, requiring an extra 67 million BAM.
Economists cite disruptions in fund inflows and outflows as another reason for the deficit, aggravating the situation. To cover the budget holes, the government is resorting to loans, with almost 342 million BAM borrowed this year alone.
Despite differing opinions between the government and the opposition, one thing is clear – there is a significant deficit that needs to be addressed to ensure financial stability in the Federation.
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