"OHR urges the institutions of Bosnia and Herzegovina to adopt a state budget for 2012 as a matter of priority. Adoption must, of course, be in full compliance with the Constitutional procedures and the relevant legislation. Without a budget, the country's development and progress are seriously impeded," the OHR said in a statement.
It was prompted by the Council of Ministers' decision yesterday to renew temporary financing for another three months, a practice which began in late 2010 when the key parliamentary parties were unable to agree on the amount of the budget.
The leaders of the six parties comprising the ruling coalition reached an agreement on the adoption of the budget in late December but this agreement has not been carried out.
The parties in the Serb entity insist on the lowest state-level budget possible, so that the two entities could have as much money at their disposal as possible, while the parties in the other entity, Croat-Muslim Federation, feel the state should be made stronger and, therefore, given more funds.
Finance Minister Nikola Spiric said earlier this month that the 2012 budget could not exceed 950 million convertible marks (about 475 million euros), claiming that economies must be made. The parties in the Federation rejected this proposal, saying the amount was not enough to finance the state's actual needs.
In today's statement, the OHR said "we regret that (state-level institutions) remain on temporary financing as the second quarter of 2012 begins," as this could affect "the ability to finance elections and implement the decisions passed by Parliament are brought into question."
"OHR reminds that the Peace Implementation Council's Steering Board called on political leaders and elected representatives on 13 December to adopt a state budget that will ensure the full functioning of state-level institutions and the fulfillment of BiH's international obligations."