Tuzla Canton before the financial collapse: the budget deficit for 15 million
According to the projections of the Cantonal Ministry of Finance, Tuzla Canton and will end the year with a deficit of about 20 million. It said the cantonal finance minister Jakub Suljkanović, having this information presented at the session of the Cantonal Government of TK.
Budget Tuzla Canton from the beginning was sentenced to a deficit, given the fact that even at the time of its creation was known to be missing 15 million.
However, these funds are made available artificially raising the revenue side without coverage and only in order to comply with the Federal Law on the Budget, which says it is impossible to make a budget that does not equal the revenue and the expenditure side.
The imperative of reducing salaries
He said the minister Suljkanović, the only way to avoid the trend of creating an excessive deficit and to end the year at zero, is to reduce the salaries of budget users.
- Of the total budget, we recommend to pay 215 million. Given the fact that these are all legally certain items, the only way is to alter the laws that determine the salary or remuneration for budget users. Simply, there is no other solution. Salaries and fees must be reduced, through dialogue with the unions, he said Suljkanović.
The Government of TK at its last session adopted a conclusion which ordered all spending to a maximum saving, all following the devastating budget projections by the end of 2015, which was presented at the session of the Canton Ministry of Finance.
- The 15 million that we artificially add to the revenue side, no cover, and if you add more than eight million, which would amount to an increase in repayment in the budget for the coming year, we will for the next year already have 23 million that will miss the budget for 2016, said Suljkanović.
The deficit of almost 100 million
Tuzla Canton and reached its maximum in terms of the amount of debt, and there is no possibility of new borrowing to cover the deficit.
The total indebtedness of Tuzla Canton is over 30 million, and if all this is added the accumulated deficit from previous years in the amount of 93 million, it is clear that TK a difficult and uncertain period.
- We will have to begin to implement a seriously restrictive policy by the end of this year, but in the next few years. If all this is taken into account, the revenue side for each of the next eight years would be increased to 35 million, in addition to add another 10 million for the rehabilitation of earlier deficit, he said Suljkanović.
The situation in Tuzla canton is very serious, especially if you take into account the reluctance of union budget users, who year after year and this pace is dictated by the budget of Tuzla Canton.
Another option for TK have initiated changes in the federal laws on the distribution of public revenues and the long and borrowing.
- Tuzla Canton does not have public companies that make their profits could increase the revenue side of the budget. We have only two public companies that make a profit and to profit of barely 100 000 KM, which is not enough for such a big hole in the budget. Another option is the sale of the share capital of these public companies, but the government of TK about it yet and I do not think, the minister said Suljkanović.
- 5 Sep, 2015
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