Federation of BiH proposes record 8.9 billion Bosnian mark budget for 2026

Total budgetary expenditures for 2026 are projected at 7.70 billion marks (approximately €3.94 billion). FBiH Deputy Prime Minister and Finance Minister Toni Kraljevic noted that the largest portion of these expenses relates to current transfers and other current expenditures, amounting to 6.29 billion marks (approximately €3.22 billion). This figure reflects the FBiH's extensive obligations toward citizens, institutions, and other levels of government.

A significant driver of the budget is the announced 17 percent increase in pensions. Consequently, expenditures for the FBiH Pension and Disability Insurance Institute (MIO) are planned at 4,422,251,070 marks (approximately €2.26 billion). Additionally, capital transfers are set at 470.7 million marks (approximately €240.66 million), while interest payments for debt servicing are projected at 1.309 billion marks (approximately €669.28 million).

Kraljevic emphasised that the 2026 budget was prepared under significant economic and fiscal challenges. He stated that the primary goal is the sustainable management of public finances through responsible expenditure control and fiscal discipline.

"The budget is focused on fulfilling obligations to citizens and institutions, with a special emphasis on welfare, healthcare and pension systems, a stable business environment, and preserving the functionality of public services," Kraljevic said. He added that the government aims to maintain a developmental component by supporting priority projects vital for economic growth and employment.

The 2026 budget is designed as an instrument to link financial resources with concrete results, utilizing a programmatic approach to ensure transparency and measurable efficiency among budget users.