The Government of Republic of Srpska approved during its
136th session, the 2021 Adjusted Budget of Republic of Srpska which framework
is BAM 4,016 million (four billion 16 million), which is an increase of 221
million or 5.8% more than the 2021 planned Budget. The budget adjustment is
based on a faster recovery of economic activities than expected, which had a
positive impact on the current execution of budget revenues as well as
continuation of trends expected by the end of 2021.
According to the proposal of the Adjusted Budget, tax
revenues amount to 2,825.2 million and are higher than planned by 9.2%. When
compared to 2020, the revenues increased by 9.5% and compared to the execution
in 2019 by 7.4%. Income and profit taxes grew by 3.1% as planned in 2021, and
by 1.3% compared to the execution in 2019 before the outbreak of the pandemic
which indicate economic recovery.
The Pension and Disability Insurance Fund achieved a
growth of 6.6% compared to the plan of the 2021 Budget Plan and compared to the
execution in 2019, it is an increase of 13.4%.
As for revenues from indirect taxes, the Adjusted
Budget Proposal planned the amount of 1,409 million, which is an increase of
13.2% compared to the funds planned in the 2021 Budget and compared to 2019, represents
an increase of 6.4%.
Non-tax revenues in the Proposal of the Adjusted
Budget of Republic of Srpska for 2021 amount to 436.6 million, which is an
increase of 216.9 million or 98.8% compared to the funds planned by the 2021 Budget.
It is necessary to point out that the Adjusted Budget also
includes the funds that were paid to the Republic of Srpska on the basis of the
allocation of special drawing rights (SDR) from the International Monetary Fund
(IMF), in the amount of BAM 200.8 million.
Total budget expenditures and expenses, including debt
repayment for 2021, amount to 4,016 million KM, which is an increase of 221
million KM, or 5.8% compared to the funds planned in the budget for 2021.
In the Adjusted Budget Proposal, the expenditures for
personal incomes have been increased by 13.7 million or 1.6% in relation to the
planned budget for 2021 and amount to 864.8 million. The increase is primarily the result of
changes to the set of laws on salaries for members of the Ministry of Interior,
education and judicial institutions, which were adopted within the series of
measures by the Government of Republic of Srpska and contribute to economic
growth and increase of workers' salaries.
On the expenditures side, it is proposed to increase
expenditures for pension and disability insurance, namely 11 million for the
increase of pensions and 19 million for the payment of one-time assistance to
pensioners in the Republic of Srpska.
It is also proposed to increase payments on the
account of social protection, personal, family and civil disability benefits,
social protection, veterans' allowance, health care for veterans,invalids of
war, families of fallen soldiers and civilian victims of war by 21.8 million or
9.2% more than planned.
The Adjusted Budget also plans to increase
expenditures for the Compensation Fund in the amount of 30 million.
Subsidies for the economy have increased by 7.7
million, while the grant for the Ministry of Health of Republic of Srpska
amounts to 11.5 million while capital investments and public investments amount
to 100.7 million.
According to the 2021 Budget of the Republic of Srpska,
it had been planned to borrow 845.7 million and the Adjusted Budget proposes that
636 million should be borrowed which is less by 210 million KM.
Expenditures for the repayment of the by the new Budget
for 2021 amount to 567 million, which means that the net indebtedness is 69
million, and it was planned at the beginning of the year 279 million KM.
The budget deficit in 2021 had been planned in the
amount of 326.6 million which was reduced to 115.8 million by the new 2021 Budget
The Government of Republic of Srpska passed the
Decision on approving funds for social welfare of workers in the amount of
1,159,841.45. These funds will be used for full and partial payment of
contributions for pension and disability insurance for 467 workers from 37
companies who lost their jobs in the process of bankruptcy or liquidation of companies
they worked in.
The Government of Republic of Srpska adopted the
Information on the need to hire and finance teaching assistants for students
with disabilities in 2022. The Ministry of Education and Culture, in
cooperation with the Pedagogical Institute, implements inclusion in schools in
the Republic of Srpska so that children with learning difficulties and specific
educational needs are included in regular classes in primary schools.
The upbringing and education of students with
disabilities is carried out in regular schools (inclusion) or primary schools
for children with disabilities. In Republic of Srpska, there are four schools
for children with disabilities which are intended mainly for children with
severe disabilities who get professional and daily care and rehabilitation in
those facilities. The enrollment area of such schools is the entire Republic and
they provide accommodation and meals for students who come from other local
There are also special classes for students with serious
disabilities in 20 primary schools, and it has been noticed that the number of
students with disabilities is increasing year after year.
The Ministry of Education and Culture implements the
concept of inclusion in order to facilitate better and provide more accessible education
for students with disabilities since 2010 and provides funds for teaching assistants
whose engagement is since 2017 defined by law.
The Ministry has so far received 418 requests for financing
teaching assistants in the school year 2021/2022. For 392 students, first-instance
expert commission approved the necessity for hiring of teaching assistants. The
Ministry of Education and Culture and the Ministry of Finance shall provide
funds for engagement of teaching assistants for the period January-December
2022 in the amount of BAM 2,200,000.00.
The Government of the Republic of Srpska has accepted
the Information on allocation of financial resources to undeveloped local government
units for 2020.
The Budget of the Republic of Srpska for 2020 had
planned transfers to undeveloped municipalities in the amount of BAM 3,300,000.00
out of which 300,000.00 was intended for co-financing of projects in those municipalities.
The goal of co-financing projects of local
self-government units from these funds is to supplement their own sources of
project financing, in the process of approved financial resources with domestic
and international organizations, domestic and foreign investment funds that
finance local self-government unit projects.
Local self-government units submitted a report on the use
of funds with relevant documentation. Based on the analysis of the submitted
documentation, the Ministry determined that a number of local self-government
units directed more funds for social benefits than originally planned, in order
to mitigate the negative consequences caused by the outbreak of the COVID-19 pandemic.
After considering the Information on the proposal for
co-financing of projects, the Government passed a Decision on giving consent to
the Fund for Environmental Protection and Energy Efficiency of Republic of Srpska
to support financially in the total amount of BAM 1,600,000.00, that is, co-finance
projects related to improving the quality of water management, construction of
water supply and sanitation infrastructure in local self-government units,
procurement of equipment for better waste management by utility companies, for
raising energy efficiency measures, maintenance of meteorological, hydrological
and control air quality stations. Funds for implementation of this decision will
be provided by the Fund in accordance with its Work Plan and the Financial Plan
This Decision was preceded by a session of the
Management Board of the Fund for Environmental Protection and Energy Efficiency
of the Republic of Srpska, at which it was stated that the projects covered by
this decision fully meet the requirements of the Rulebook on the manner and
criteria for allocation of funds and criteria for evaluating proposals. Funds
of the Fund for Environmental Protection and Energy Efficiency of the Republic
of Srpska and must be in accordance with the 2021 Work Plan and Financial Plan
of the Fund for Environmental Protection and Energy Efficiency of the Republic