13 November 2008 SarajevoÂ – The government of the Serb-dominated entity of Republika Srpska has cut minister’s salaries and introduced savings in the rest of the administration as part of a plan to re-allocate resources for increased social support.
The government on Thursday adopted the entity budget for 2009 at 1.67 billion Convertible Marks (Euro 834 million). At the same time it ordered all budget users to reduce spending by at least one per cent in the first three quarters of 2009 so as to enable an increase in spending on social benefits in the fourth quarter of 2009.
According to the government’s plan, as of this month, salaries of the premier and deputy premier, all ministers, deputy ministers and advisors will be reduced by 10 per cent. All new government hiring will be halted and the positions of all current government employees will be reassessed, deputy premier Anton Kasipovic told media on Thursday.
In light of the worsening global economic situation, the Republika Srpska has decided to declare 2009 “the year of savings” he said.
Meanwhile, in the other Bosnian entity, the Croat-Bosniak (Bosnian Muslim) Federation, political in-fighting has halted or even reversed key social and economic reforms along with crucial privatization and construction projects. The coalition government has been undermined by shifting internal interests since it was formed after the 2006 general elections.