Admir Cavalic, MP from Party for BiH (SBiH) in the Parliament of Federation of Bosnia and Herzegovina told N1 that he does not see probable the scenario of the increase of the minimum wage in the Federation entity by June 1.

He emphasizes that nothing is being done about it and suggests two possible scenarios:

“The first is to accept my initiative to extend the one-time aid payment of 2,550 KM beyond July 1, and I have recommended extending it until fiscal laws are passed. The second scenario is a quasi-wage increase, where fiscal reforms are not implemented but meal allowances and transport are included as taxable income, as is the case in Republika Srpska,” he explained.

Cavalic deems the time is right for fiscal reforms.

“It's the right time because we still see revenue growth from taxes, there is room for fiscal reforms, and there's no need to use old arguments that pension and health systems will be jeopardized. They won't, especially since international creditors might enter into an arrangement to lend us half a billion to a billion convertible marks, providing system stability during the fiscal reform. It's funny to hear the same excuses that we heard from Novalic's government,” Cavalic stressed.