Advertisement

Bosnia and Herzegovina: Local Government Debt

  • Halko Basarić
  • Nina Branković
  • Lejla Lazović-PitaEmail author
Chapter

Abstract

Fiscal decentralisation in Bosnia and Herzegovina is characterised by a complex post-conflict constitutional organisation consisting of two entities and one self-governing unit. The decentralisation process and the position of local government units in both entities over the past 20 years can be divided into three phases. Although the entities are constitutionally organised differently, the assignment of expenditures to local government units is similar in each one and did not change over time. At the same time, the allocation of revenues to local government units has improved significantly. However, since indirect tax revenues take the highest share of their total revenues in both entities, with the outbreak of global financial crisis these revenues became volatile, which triggered a rise in local public debts in both entities.

Keywords

Fiscal decentralisation Local government Bosnia and Herzegovina 

References

  1. Analitika. (2014). Survey results: High degree of distrust in political parties and government institutions in Bosnia and Herzegovina. Sarajevo: Analitika—Centre for Social Research. Retrieved from http://pasos.org/wp-content/uploads/2014/11/povjerenje_fact_sheet_english.pdf
  2. Antić, D. (2013). Multi-level fiscal system in Bosnia and Herzegovina: Evolution and coping with economic crisis. Financial Theory and Practice, 37(3), 279–310. Zagreb. Retrieved from http://www.fintp.hr/upload/files/ftp/2013/3/antic.pdf
  3. Antić, D. (2014). Fiskalna koordincija kao ključni faktor funkcioniranja fiskalnog federalizma u složenim državama. Godišnjak fakulteta pravnih nauka, 4(4), 168–185. Banja Luka. Retrieved from http://www.gfpn-au.com/sites/default/files/GFPN-4-4/GFPN_godina_4_broj_4_Dinka_Antic.pdf
  4. Basarić, H. (2009). Municipal financial assessment study (unpublished). Ministry of Foreign Trade and Relations of BiH and the World Bank.Google Scholar
  5. Begić, K. (2000). A constitutional framework for fiscal federalism in Bosnia and Herzegovina. In M. Zlatić (Ed.), The fiscal decentralisation initiative for Central and Eastern Europe: Forum on fiscal decentralisation in Bosnia and Herzegovina (pp. 21–28). Conference proceedings, Sarajevo, 1st ed. Budapest: FDI-CEE.Google Scholar
  6. BHAS—BIH Agency of Statistics. (2016). Census of population, households and dwellings in BiH, 2013, final results. Sarajevo: BHAS. Retrieved from http://www.popis2013.ba/popis2013/doc/Popis2013prvoIzdanje.pdf
  7. BIH Ministry of Finance and Treasury. (2010–2015). Informacija o stanju javne zaduženosti Bosne i Hercegovine (different years). Sarajevo: BiH Ministry of Finance and Treasury. Retrieved from http://mft.gov.ba/bos/index.php?option=com_content&view=article&id=692&Itemid=124
  8. Čaušević, F. (2001). The fiscal structure in BH and the problems it generates. In V. Bojičić-Dželilović et al. (Eds.), International support policies in south-east European countries: Lessons (not) learned in BH (pp. 101–115). Sarajevo: Müller.Google Scholar
  9. Central Bank of Bosnia and Herzegovina. (2017). Statistics web portal (Panorama Necto). Retrieved from http://www.cbbh.ba/Content/Read/915
  10. Eaton, K., Kaiser, K., & Smoke, P. (2010). The political economy of decentralization reforms. Washington, DC: The World Bank. Retrieved from http://siteresources.worldbank.org/EXTDSRE/Resources/DecentralizationReforms.pdfCrossRefGoogle Scholar
  11. IMF GFS. (2001). Government financial statistics manual 2001. International Monetary Fund. Retrieved from https://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf
  12. ITA. (2016). Distribution of revenues from indirect taxes. Banja Luka: Indirect Taxation Authority. Retrieved from http://www.new.uino.gov.ba/bs/Prihodi%202016
  13. Ivanić, M. (2000). Fiscal decentralisation and the efficiency of public institutions in RS. In M. Zlatić (Ed.), The fiscal decentralisation initiative for central and eastern Europe: Forum on fiscal decentralisation in Bosnia and Herzegovina (pp. 97–110). Conference proceedings, Sarajevo, 1st ed. Budapest: FDI-CEE.Google Scholar
  14. Kreso, S. (2005). Fiscal decentralization in BiH. In International symposium: Bosnia and Herzegovina from past to present (pp. 241–259). Çanakkale: ÇanakkaleOnsekiz Mart University.Google Scholar
  15. Lazović-Pita, L. (2015). Income, personal income tax and transition: The special case of Bosnia and Herzegovina. Bamberg: BERG-Verlag.Google Scholar
  16. Lazović-Pita, L., & Štambuk, A. (2015). Professional opinions and attitudes about tax policy in Bosnia and Herzegovina with the special focus on the Federation of Bosnia and Herzegovina. South Eastern European Journal of Economics and Business, 10(2), 29–44.CrossRefGoogle Scholar
  17. Mujakić, M. (2010). Lokalna samouprava u Federaciji Bosne i Hercegovine—koncept, nadležnosti i organi. Hrvatska Javna Uprava, 10(4), 1045–1058.Google Scholar
  18. Mujakić, M. (2012). Pravni aspekti financiranja lokalne samouprave u Bosni i Hercegovini. Hrvatska i komparativna javna uprava, 13(2), 611–623.Google Scholar
  19. Oates, W. E. (1972). Fiscal federalism. New York: Harcourt Brace Jovanovich, Inc.Google Scholar
  20. RS Institute of Statistics. (2016). Statistički godišnjak 2016—drugo izmjenjeno izdanje. Banja Luka: RS Institute of Statistics. Retrieved from http://rzs.rs.ba/front/article/2240/
  21. Savezni zavod za statistiku. (1989). Statistical yearbook of Yugoslavia, 36. Belgrade: Federal Institute for Statistics.Google Scholar
  22. Transparency International. (2014). Percepcija javne uprave Bosna i Hercegovina 2014. Retrieved from https://www.cin.ba/wp-content/uploads/2014/09/TI-BIH-Percepcija-Javne-Uprave-BiH-2014.1.pdf
  23. USAID. (2005). Reordering intergovernmental fiscal relations in Bosnia Herzegovina: Local government finance reform and the implementation of VAT (pp. 1–30). Sarajevo: USAID.Google Scholar
  24. Weingast, B. R. (2007). Second generation fiscal federalism: Implications for decentralized democratic governance and economic development. Retrieved from http://policydialogue.org/files/events/Weingast_Second_Generation_Fiscal_Federalism.pdf

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Halko Basarić
    • 1
  • Nina Branković
    • 2
  • Lejla Lazović-Pita
    • 3
    Email author
  1. 1.SarajevoBosnia and Herzegovina
  2. 2.University of ZagrebZagrebCroatia
  3. 3.Faculty of EconomicsUniversity of SarajevoSarajevoBosnia and Herzegovina

Personalised recommendations