In order to strengthen the fiscal policy analysis in Bosnia and Herzegovina, the EU-funded Project “EU Fiscal Policy Support to Bosnia and Herzegovina” (EUFPS) has organised a five-day conference on “Public finance and fiscal management” which started in Sarajevo today. The conference brings together leading international experts and representatives from the beneficiary institutions, who will share their views and experiences on statistics, macroeconomic and fiscal forecasting, budgetary coordination and fiscal rules, taxation and expenditure as well as assessments of fiscal policy and fiscal sustainability.
In his opening address, Mr. Marc Vanbrabant, First Counsellor of the Delegation of European Commission to BiH, pointed out the importance of adequate fiscal policy in BiH: “The European Partnership calls for BiH to develop fiscal surveillance mechanisms that promote fiscal discipline in BiH; to ensure an adequate environment for institutional cooperation within the framework of the National Fiscal Council; and to agree on a permanent formula for allocation of indirect tax revenue”, said Mr. Vanbrabant. He expressed his pleasure to announce that Bosnia and Herzegovina was progressing toward achieving the other noted European Partnership priorities, in pursuit of fiscal prudence and sustainability.
BiH Deputy Minister of Finance and Treasury, Mr. Fuad Kasumović, noted that the results of this Project were very useful for the management of fiscal policy in BiH. “Building of institutional capacities and strengthening fiscal management at all levels of BiH government are the foundations for sustainable reform in BiH and this conference will, no doubt, contribute to improving of the knowledge and understanding of public finance and its management”, concluded Mr. Kasumović.
Mr. Boris Petkov, EUFPS Team Leader, expressed his gratitude to the European Commission Delegation to BiH for its financial support and to the BiH Ministry of Finance and Treasury for its cooperation on this Project, adding that Bosnia and Herzegovina, both its entities and Brčko District have laid the foundation for sound public finance management. Furthermore, he pointed out that “…the adoption of legislation for the establishment of the National Fiscal Council this year would demonstrate the strong will of all relevant authorities to enhance fiscal policy coordination in order to implement sound fiscal policy for the entire country.”
More than 50 participants, including representatives from Macroeconomic Analysis Unit, Ministry of Finance and Treasury of BiH, Ministry of Finance of the Federation of Bosnia and Herzegovina, Ministry of Finance of Republika Srpska, Brčko District Revenue Authority and the Central Bank of BiH, as well as representatives from International organizations, will conclude the conference on Saturday, 5 July 2008 by visiting Mostar, one of the most beautiful towns of southern BiH.
About EUFPS
The EU Fiscal Policy Support to Bosnia and Herzegovina Project follows the general structure and direction outlined in the Inception Report and Work Plan signed on 10 April 2006. The current project is implemented by the public sector consultancy company Human Dynamics and it will be successfully concluded by 24 August 2008.
The immediate objective of EUFPS is to strengthen the capacity of the BiH authorities to develop and execute effective fiscal policies and to improve the management of public finances at State, Entity, and District levels, including strengthening sub-entity government levels’ ability to comply with fiscal reporting requirements. The wider objective is to contribute to progress in the Stabilisation and Association process and foster institutional development and economic growth in BiH on its road to European Union integration.
Three main components of the project – Strengthening the Fiscal Management Capacity, Improving the Database of Government Financial Statistics and Raising Public Understanding of Fiscal Developments – would foster reform and economic integration into EU Structures by improving BiH’s capacity to provide information on macroeconomic performance and forecasts, to formulate economic policy and to develop instruments necessary for its application.
The European Union provided 1.9 million Euros for implementation of the project ‘European Union Fiscal Policy Support to Bosnia and Herzegovina’.
