BOSNIA TO POST BUDGET SURPLUS IN 2008

SARAJEVO, Bosnia (October 29,2008) - Bosnia expects to post a consolidated budget surplus in 2008 but will have to apply budgetary restrictions in 2009, Bosnia's Prime Minister Nikola Spiric said yesterday.

"We don't have any indication of a budget deficit this year," said Spiric. "I expect that we shall have some unspent funds in the state budget this year as well."

The international financial agencies, such as the International Monetary Fund (IMF), have long called for the formation of the Bosnian national fiscal council to coordinate the regional fiscal policies.The fiscal council became operational in September, when it conducted its first session.

"We will have to conduct a restrictive budgetary policy at all levels in 2009 and the budget planning will have to be done within realistic resources and take into account all fiscal plans related to 2009," Spiric said.

The Bosnian state budget has seen some unspent funds in the past years due to restrictive law on public procurement.Spiric said he expected a similar situation this year as well, but failed to give any figures.
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