With the support of the European Union through the project “EU4EfficientPFM/Treasury Software” and as a part of the process of the public administration reform, four ministries of finance in Bosnia and Herzegovina were provided with a software that enables the transition from traditional line-item to programme-based budgeting.

As the first institution to start using the new software, the Ministry of Finance of FBiH together with the representatives of the EU in BiH and implementing partner Finit/CORE on 25 April 2025 marked the beginning of a 12-month period during which this ministry’s budget users will receive on-the-job training in the software, and during which any technical issues will be addressed and resolved by the software provider.

“We are helping support a transition in Bosnia and Herzegovina’s institutions towards budgeting that allocates funds focused on clear objectives and expected outcomes, rather than the traditional line by line budgeting model. This approach is called Programme-Based Budgeting and our aim is to support public institutions to think about what they want to achieve, not just what they want to fund. The European Union is glad to be supporting finance ministries of Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Republika Srpska and the Brcko District Directorate for Finances, by introducing software that provides the necessary technical tools for this shift”, said Aurelie Valtat, Head of European Integration, Political, Press and Information Section in the European Union in Bosnia and Herzegovina.

The European Union has been providing continuous support to public administration reform in Bosnia and Herzegovina, and specifically the public finance management reforms as its part, since the early 2000s. Between 2020 and 2023, with the support of the EU, over 1,800 budget users across the country were trained, and technical support was provided in drafting the legal framework and manuals. These activities laid the foundation for the development of the new budgeting software which was developed in cooperation with ministries of finance and local implementation partners, Finit Consulting d.o.o. and CORE d.o.o. 

Although it was initially designed to support Programme-Based Budgeting, its functionality has already been expanded with the integration of two additional modules – the Public Investment Management Information System (PIMIS) and a Donor Database. Current efforts are focused on exploring its potential use in gender-responsive budgeting as well.

This application of the new software marks a major step forward in establishing a modern, accountable, and transparent public finance system – fully aligned with European standards and values. Looking ahead, the software holds potential for further development and expansion – both horizontally across sectors, and vertically to lower levels of government. While there are currently no additional EU funds earmarked for further development, opportunities may arise from other funding sources. One such opportunity is the EU Growth Plan for the Western Balkans, a powerful instrument with a total value of €6 billion.

However, as Bosnia and Herzegovina remains the only country in the region that has not yet submitted a Reform Agenda under this plan. Should BiH authorities agree on an Agenda with a sufficient level of ambition, the country could be eligible for up to €1.08 billion in funding conditional upon progress in key reform areas – with public finance management as an important cross-cutting priority.