​​​Minister of Finance of Republika Srpska, Ph.D Zoran Tegeltija, discussed today in Banja Luka with the members of the Fiscal Council of Republika Srpska on economic trends in the Republic of Srpska, as well as activities on establishing the Draft of Budget of Republika Srpska for 2019.

During the talks with members of the Fiscal Council, the Minister pointed out that in 2019 he expects the continuation of positive economic trends, and that according to this, GDP growth of 3.7% is estimated, which will be affected by all other policies of the Republika Srpska Government.

"The Draft Budget for 2019, Economic Reforms Program and the Law on Budget Execution will be ready within a week, after which it will be made available to the public," announced the Minister of Finance, noting that new Government will send it to National Assembly of the Republika Srpska in the form of proposals, defining new policies.

The Minister stated that the Draft Budget prepared by the Ministry of Finance of Republika Srpska amounts to BAM 3,227 billion, which is 196,8 million BAM less than the 2018 Rebalance.

"The original revenue is BAM 2,779 billion, and the expected revenue growth is 21,4 million higher than in 2018," the minister said, adding that the increase in personal income positions is expected to be 30,6 million due to the planned increase in education by 8%, growth of 40 million KM in the field of pension insurance, and it is planned to increase transfers to the Fund for child protection for 17,6 million KM.

Concerning expenditures, the Minister announced that the planned reduction of debt repayment expenses by BAM 264.2 million is lower than in 2018, while the planned budget surplus will amount to 65.5 million BAM.

Advisor to the Minister, Dalibor Tomas, stated that the Ministry of Finance in the past half year has been actively working with the business community in the implementation of the Memorandum of Cooperation, such produced the Guidelines for the Development of the Economy, the basis for the preparation of the Program of Economic Reforms of the Republic of Srpska for the period 2019-2021.

The proposed Economic Reform Program is based on policies that have been harmonized with social partners in the previous period and will be the starting point for the policies of the new Government of Republika Srpska.

„The new Government of the Republic of Srpska will conduct public debates and define new policies, which will be incorporated in the Proposal of the Economic Reform Program. We expect it to be adopted at the session of the National Assembly of Republika Srpska by the end of 2018.", said Tomas.

When it comes to the adoption of the Economic Reform Program, Tomas emphasized that key obstacles were identified for improving in the coming period, including fiscal burden, informal economy, reform of education, with the reform of the Employment Service, and planned improvements in the social protection system.

The President of the Fiscal Council of the Republika Srpska, Milenko Krajisnik, stressed on this occasion that encouraging the continuation of positive trends, and that it is very important that the key documents of the Budget and the Economic Reform Program are adopted on time.

"This would save the effects of fiscal consolidation in the past two years, and there are challenges and problems that need to be solved in the future," Krajisnik said, adding that these challenges in three areas, public enterprises, a reduction the risk of public debt and the financial sustainability of the health sector.

Member of the Fiscal Council, Branko Krsmanović, pointed out that members of the Fiscal Council during the meeting today gained the belief that everything is proceeding with the planned dynamics.

"Cooperation between the Fiscal Council and the Ministry of Finance is not just about giving opinions, but it is also reflected in the consideration of other key policies that affect the growth and development of the economy," Krsmanovic said, pointing out that in the coming period, focus should be on Industrial policy.