Council of Ministers of Bosnia and Herzegovina Hols tis 111st Session

DEFINED DRAFT 2026 BUDGET LAW OF BIH ISNITTUTIONS

The Council of Ministers of BIH adopted unanimously, with some corrections made at the session, a Draft 2026 Law on Budget of Institutions of BIH and International Liabilities of BIH, to be passed by the Ministry of Finance and Treasury to the BIH Presidency, authorised to proposing it to the Parliamentary Assembly of BIH, which ultimately adopts the document.

The total revenues, receivables and financing of BIH Institutions within 2026 Budget are KM 1,580,500,000, for Km 10 million or 1% more relevant to 2025 Budget of BIH Institutions. Indirect tax revenues are planned to amount to KM 1,020,500,000, the same level as in 2024 Budget.

Total expenditures of BIH Institutions and foreign debt servicing are KM 2,559,219,547 and are less for KM 238,053,469 or 9% relevant to 2025 Budget. Out of the amount, expenditures of BIH Institutions are KM 1,580,500,000 or 1& higher relevant to 2025 Budget, while foreign debt servicing is KM 978,719,547 or less for 20%.

The Council of Ministers of BIH adopted 2026-2028 Framework Budget Document (FBD) of Institutions of Bosnia and Herzegovina, harmonised with the Global Framework of Fiscal Balance and Policies of BIH, adopted by the Fiscal Council of BIH on April 27, 2026.

The BIH Institutions FBD will be posted at the Ministry of Finance and Treasury web site.

INCREASED REFUNDS FOR TRAVEL COSTS TO EMPLOYEES IN BIH INSTITUTIONS

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed decision on amendment of a Decision on level, way and procedure of implementation of right to refund of costs of transport to workplace in Institutions of Bosnia and Herzegovina.

The amended decision increases the maximum amount to be paid to an employee in BIH Institutions for daily/monthly refund for 15%, precisely to KM 460 instead of previous KM 400.

Additional resources in amount of KM 7,300,000 should be secured annually in BIH Institutions Budget for implementation of this decision.

The decision takes effect as at day of adopted and will be published in the “Official Gazette of BIH”, and will be applied as at taking effect of 2026 Budget of BIH Institutions.

NEW CONTRACT ON BORDER CROSSINGS OF BIH AND CROATIA FOR EASIER CROSSING OF BORDER AND BETTER CONTROL

The Council of Ministers of BIH adopted a Negotiations report for conclusion of a Contract between Bosnia and Herzegovina and the Republic of Croatia on border crossings, to send by the Ministry of Security to BIH Presidency for further decision-making procedure, with a proposal for Chairwoman of the Council of Ministers of BIH Borjana Krišto to act as the BIH signatory thereof.

The new border crossing contract will strengthen mutual relations and cooperation of the two countries and will secure conditions for easier crossing of the joint joint state border and its effective control. The proposed contract defines six border crossings for international road transport of passengers and cargo, which are subject to inspection control and monitoring, pursuant to relevant legislation of the contracting parties, 17 crossings for international road transport of passengers and cargo, five border crossings for international railway transport of passengers and cargo and 20 border crossings for international road transport of passengers, in addition to 10 permanent border crossings for border area traffic.

The Contract between Bosnia and Herzegovina and the Republic of Croatia stipulates its temporary application until the date of signing thereof.

The negotiations for conclusion of the Contract between Bosnia and Herzegovina and the Republic of Croatia on Borde Crosings started late 2025,and were finalised  in end February 2026.

MULTI-ANNUAL PROJECT OF PROCUREMENT OF UNIFORMS FOR ITA EMPLOYEES

The Council of Ministers if BIH took a decision to approve a multi-annual “Purchase of Official Uniforms for Employees with the Indirect Taxation Administration Project”, to be included into 2026-2028 Multiannual Investment Programme, worth total KM 7,200,000.

The relevant funds will be secured from the Budget of BIH Institutions, and the planned dynamics of funds spending is KM 3,500,000 in 2026, 3,000,000 in 2027 and 7,00,000 in 2028.

CHIEF ATTORNEY’S OFFICE OF BIH: TO SOLVE ANNOUNCED ARBITRAGE DISPUTE AMICABLY

The Council of Ministers adopted a piece of information on a Note on Intention of Initiating Arbitrage Procedure according to Article 8 pf Bilateral investment Agreement between Bosnia and Herzegovina and Serbia (001), filed by Zagreb-based Law Office “Gahski, Prka and Others” on behalf of investor Borčilo Drago.

In that regard the Council of Ministers of BIH took the BH Chief Attorney’s Office-tabled proposal on appointment of ad hoc member of Bosnia and Herzegovina’s Negotiating Team for amicable solution of international investment disputes in a procedure against the notification on intent for start an arbitrage procedure. The appointed into the ad hoc members of the Negotiating Team are Olivera Janković from the Brčko District of BIH Financial Directorate and Dejan Đurović from the Brčko District of BIH Attorney’s Office.

According to the notification on intent to start an arbitrage procedure, Borčilo Drago directed his investment through “MACK”, Ltd Brčko to trade with products connected with energy in the Brčko District of BIH, and Bosnia and Herzegovina authorities, especially taxation office have imposed a series of unlawful and wantonly measures seriously harming the investment.

The BIH Chief Attorney’s Office, having regard of the presented case, proposed starting of formal negotiations, in accordance with the Bilateral Investment Agreement between Bosnia and Herzegovina and Serbia (29001) on dispute solving, for the aim of reaching an amicable solution of the dispute and just and mutually acceptable outcome.

PRPOPOSED RATIFICAION OF EU-BIH IPA III FINANCE AGREEMENT

The Council of Ministers of BIH defined a Proposal Decision on ratification of an IPA III Finance Agreement under 2025-207 Multi-Annual Programme for Bosnia and Herzegovina, between the European Union, represented by the European Commission, and Bosnia and Herzegovina, represented by the Council of Ministers of BIH Directorate for European Integrations.

It is about EUR 140,500,00 worth Agreement fully financed by het European Union within the Instrument of Pre-Accession Assistance (IPAIII)

Through its concrete financial support to reforms in BIH, the EU shows its commitment for progressing of Bosnia and Herzegovina on the European road.

The Agreement term is 12 years, and the period of operative implementation is six years from the conclusion thereof.

PRPOPOSAL DECISION ON RATIFICATION OF CONVENTION AGAINS TRAFFICKING IN HUMAN ORGANS

The Council of Ministers of BIH defined the Ministry of Foreign Affairs-proposed decision on ratification of the Council of Europe Convention Against Trafficking In Human Organs, and will pass it to the BIH Presidency for further procedure.The Convention was signed on March 17, 2026, by Justice Minister of BIH Davor Bunoza, on behalf of Bosnia and Herzegovina, as authorised by the BIH Presidency.

The Convention aims prevention and fight against trafficking in human organs through incrimination of certain actions, protection of rights of victims of criminal deeds defined under the Convention, facilitation of cooperation at national and international levels in suppression of trafficking in human organs, including preventive measures at both national and international levels.

By acceding to the Convention, Bosnia and Herzegovina shows a firm decisiveness in fight against unauthorised trafficking in human organs and joins an initiative of strengthening international cooperation mechanisms for prevention and effective sanctioning of such practice.

TO RATIFY AGREEMETN ON ESTABLISHEMETN AND OPERATIONS OF FRENCH DEVELOPMENT AGENCY IN BIH

The Council of Ministers defined the Ministry of Foreign Affairs-tabled Proposal Decision on Ratification of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the French Republic referring to establishment and operations of Proparco I Expertise France, French Development Agency in Bosnia and Herzegovina.

The Presidency of BIH endorsed the Agreement on Ausust, 26, 2925 in Paris on behalf of Bosnia and Herzegovina, and Minister of Foreign Affairs of BIH Elemdin Konaković signed it on March 20, 2026.

PRPOPOSAL DECISION ON RATIFICATION OF PRITECTION OF PROFESSION OF LAWYER

The Council of Ministers of BIH defined and will send to the BIH Presidency for further procedure a Proposal Decision on ratification of the Council of Europe Convention on Protection of Profession of Lawyers, singed by BIH Justice Minister Davor Bunoza, on behalf of Bosnia and Herzegovina, on March 17, 2026, in Strasbourg.

The Convention on Protection of Lawyers Profession strengths lawyers’ independence and security and protects confidentiality of relations with clients.

The Proposal Decision on ratification will be sent to BIH Presidency for further procedure.

ECONOMIC COOPERATION AGREEMENT BETWEEN BIH NAD REPUBLIC FO KOREA IN RATIFICATION PROCEDURE

The Council of Ministers of BIH defined a Proposal Decision on ratification of an Agreement on Economic Cooperation between Bosnia and Herzegovina and the Republic of Korea, to send it to the Presidency of BIH for further procedure.

The Agreement creates a legal framework for institutional cooperation of the two countries for the purpose of broadening and diversification of mutually beneficial cooperation in areas of shared interest. The cooperation will include, among other things, inspection of development and prospects of bilateral economic relations, searching for possibilities of joint participation at the third markets and boosting cooperation between economic entities.

PIECE OF INFORMATION ON AWARD IN CASE BEGIĆ VS BOSNIA AND HERZEGOVINA

The Council of Ministers of BIH adopted a piece of information on the European Court for Human Rights award in case Begić vs Bosnia and Herzegovina, ap.No.16613/23, of Feb. 3, 2026.

The piece of information contains resume of the award, the European Cort for Human Rights published atttis web site on Feb. 3, 2026, in file Begić vs Bosnia and Herzegovina.

APPLICATION OF ORIGIN OF GOOSD RULES IN FOREIGNTRADE ARRANGEMENTS

The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations-proposed piece of information on implementation of a Decision on control and surveillance of implementation of obligations assumed under international bilateral and multilateral treaties, agreements and conventions regarding defining origin of goods in 2025.

The aim of the piece of information was to brief the Council of Ministers of Bosnia and Herzegovina with the volume, structure and contents of issues existing in implementation of foreign trade agreements concerning application of origin of goods rule.

CEFTA JOINT COMMITTEE 2025 MEETING

The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations-tabled report from CEFTA Boards joint meeting held in 2025.

The Ministry of Foreign Trade and Economic Relations should provide the CEFTA decisions to institutions in Bosnia and Herzegovina for implementation and acting upon.

ENDORSED INITIATIVE, CEB LOAN FOR BANJA LUKA MEDICAL COMPLEX

The Council of Ministers of BIH endorsed an Initiative from the Ministry of Finance and Treasury and designated negotiating delegation for conclusion of a Loan Agreement between Bosnia and Herzegovina and the Council of Europe Development Bank (CEB) for a medical complex in Banja Luka.

The aim is to support construction of a new Medical Campus in Banja Luka, as the first phase of a long-term investment programme of the Medical Complex, which contribute to strengthening and modernisation of medical education, practical training, research and tertiary health services in Republika Srpska.

The total estimated costs of the “Medical Complex Banja Luka” Projects is EUR 106,490,000, of which EUR 75 million has been already secured from the European Investment Bank (EIB).

The Ministry of Finance and Treasury should submit a loan application to the Council of Europe Secretariat-General, and provide, after negotiations completed, a Draft Loan Agreement with Platform for its conclusion to the Council of Ministers.

IBRD LOAN FOR REPUBLIKA SRPSKA HEALTH SYSTEM

The Council of Ministers of BIH defined a Proposal Loan Agreement (Additional Financing for Health Systems Improvement Project) between Bosnia and Herzegovina and the International Bank for Reconstruction and Development (IBRD) with Platform for its conclusion.

It is a continued financing of an earlier approved project for improvement of health services and financial stability of the health system in Republika Srpska, in addition to a co-financing of reconstruction, construction and furbishing project of four psychiatric institutions by an additional EUR 45,000,000 loan.

The loan is allocated to Republika Srpska, with 32-year term, including 7-year grace period, and the planned project completion date is Dec. 31, 2023.

The Ministry of Finance and Treasury of BIH should provide the Proposal Loan Agreement with Platform for its conclusion to the BIH Presidency, along with a proposal for the Minister of Finance and Treasury of BIH to act as the BIH signatory thereof.

KM 30,000 FROM BUDGET CURRENT RESERVES FOR RECEPTION ON KURBAN BAYRAM

The Council of Ministers of BIH approved KM 30,000 from current budget reserves to the General Service of BIH Institutions for prearrangement of a traditional reception for Kurban Bayram, hosted by Deputy Chairman and Minister of Defence Zukan Helez in the Bosnia and Herzegovina Parliamentary Assembly Building.

TO SIGN CONTRACT ON BOSNIA AND HRZEGOVINA’S PARTIICPATION AT EXPO 2027

The Council of Ministers of BIH took note of a piece of information in a need to sign a contract on participation of Bosnia and Herzegovina at EXPO 27 Belgrade, and authorised the Minister of Foreign Trade and Economic Relations of BIH Staša Košarac to sign a Contract on participation, in his capacity of Chair of the Organisation Board. (end)

Link for Photos:

https://www.flickr.com/photos/vijeceministara/albums/72177720333783848/