The National Assembly of Republic of Srpska adopted the 2014 Budget in the amount of KM 2,025,000,000 and the accompanying Economic Policy for 2014 at its 18th special session held on 7 and 8 December 2014.
Explaining the Proposal of the 2014 Economic Policy, Prime Minister Cvijanovic stated that the primary aim of this Document was to unburden the economy and that its main objectives were: economic growth, new employment, raising the competitiveness of the RS economy, fight against crime and corruption and establishing of efficient and just judiciary.
The Prime Minister said that among the objectives of the Economic policy were also stability of public finances, better solvency, better life all social groups, upgrading of the finance sector, European integrations and enhancing regional cooperation.
Prime Minister further stated that economic growth and sustainable employment would be achieved through realization of big public and private capital investments, favorable tax policy and direct incentives for investments and employment.
As for the tax policy the Prime Minister said that no taxes would be raised, no new taxes imposed during the crisis and that non-taxable portion of the salary in the amount of 200 KM has been introduced.
In order to achieve economic growth the Government of Republic of Srpska would support the economy and new employment through loans from the Economic-Development Component of the RS Development Program, through direct incentives to agriculture and active employment policy.
With regard to the objective of raising the competitiveness of the RS economy, the Prime Minister said that this would be done through stimulating fiscal policy, finalization of the business establishment reform and removal of administrative barriers.
Higher competitiveness of the economy would also be achieved through innovative approach, technological improvements, road infrastructure and branding of domestic products.
Prime Minister Cvijanovic said that a whole series of measures were foreseen regarding the fight against crime and corruption and efficient and just judiciary.
“In the course of the next year beside the existing measures there would be some others whereas the institutional mechanisms for combating crime and corruption would be upgraded. We shall work on strengthening institutional capacities to fight crime and corruption, on improvement of cooperation between the entity institutions and the non-government sector, organizations of civil society and academic community and also on establishing the Anti-Corruption Team which in accordance with the Anti-Corruption Strategy and the Action Plan“, the Prime Minister said and added that special attention should be related to establishing efficient and just system of judiciary since it has proven so far that without this condition processing of crime and corruption generated no effect.
According to Prime Minister Cvijanovic, stability of public finances and better solvency of the RS economy would be achieved as the result of additional efforts on stabilization of public finances, through additional savings on non-productive budget spending, continuous work on consolidation of the participation of overall debt in GDP, introduction of the treasury system of operations into the health care system, by creating professional public administration and reducing business insolvency.
Prime Minister Cvijanovic stated that the emphasis was given to the employment in the real sector and that all stated measures were in that function.
“Special attention would be given to social security of the population with lowest level of income without diminishing the level of rights and in that context special consideration would be given to the pensioners, veterans, families of fallen soldiers and invalids whose allowances would be raised in line with the legal regulations“, Prime Minister Cvijanovic said.
As the Prime Minister said, the overall improvement of the life of all social groups would happen through stabilization of the health care system, improvement of medical services which should aim at individualized approach toward patients, continuation of capital projects in health care system, advancement of the social security system, the increase of pensions and higher veterans and family allowances and better position of the young.
“In 2014 all projects which have already started or have been planned and which refer to construction or renovation of hospitals, health centers and their equipping and modernization would be realized“, Prime Minister Cvijanovic said.
Speaking about the finance sector, Prime Minister Cvijanovic stressed that this sector, despite the world economic crisis, maintained stability.
“We shall upgrade the finance sector through increased supervision of the credit risk in banks, facilitation of adequate capital and reserves for credit collaterals, enhancement of the bank supervision, adoption of legislation which would enable buying and selling of bank loans and performing of the factoring, supporting the capital market development through the improvement of the investment funds sector, creation of regulatory pre-conditions for gradual liberalization of prices in obligatory traffic insurance and institutional integration of the finance supervision in the Republic of Srpska“, Prime Minister Cvijanovic said.
The Prime Minister pointed out that very important goals of Economic Policy were also European Integrations and strengthening of regional cooperation and in that context the priority being cooperation with Serbia and implementation of joint projects such as the “Podrinje” Project.