IMF criticizes Bosnia and Herzegovina govt over public spending

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IMF criticizes Bosnia and Herzegovina govt over public spending

The government of Bosnia and Herzegovina, who accused each other of seeking a solution, received criticism from the International Monetary Fund. In its analyses, the IMF criticized the level of public spending in Bosnia and Herzegovina, primarily the increase in wages, stating that inflation is still at a high level. The marked slowdown in economic activity is holding back the reform process. Analysts agree with the recommendations, which refer to the wastefulness of institutions.

The IMF surveyed the situation in Bosnia and Herzegovina and came up with a series of recommendations to reduce public spending due to reforms and limit wage growth, or return to the previous level, because inflation is still high. There are obligations to repay overdue loans.

Salaries in the public sector of Republika Srpska will not increase because there are no funds, the government said, which partially means the adoption of the IMF's recommendation. However, the unions of the five branch unions, budget users, do not agree to this, so they announced large protests at the end of the month.

Bozo Maric, the president of the Trade Union of the administration of the RS, is the president of the Trade Union of the RS.

The IMF is right when it comes to public spending, but they add that new employment should also be stopped.