Although military expenditure of Bosnia and Herzegovina has increased comparing to previous years, it remains the lowest in the region – below 1% of GDP. 1
2022
Share of GDP 0,69%
Based on the federal budget for 2023 (adopted in April 2023), the initial defence budget is increased by approximately 27%. However, the balance sheet for 2023 has not been adopted yet, but only the report on actual expenditure from January 1, 2023, until September 30, 2023. Based on that information, the military spending of Bosnia and Herzegovina does not seem to be significantly increased in 2023 either. The 2024 budget has not been adopted yet.
Traditionally, Bosnia and Herzegovina allocates the majority of its defence budget on personnel costs. The MoD has the largest number of employees among state institutions in the country and the highest share in the total amount of gross salaries. Still, the biggest turnover of personnel is evident at the MoD because of the implementation of provisions of the Law on the Armed Forces in Bosnia and Herzegovina related to the prescribed age limit. Namely, the Armed Forces of Bosnia and Herzegovina were in a transitional period starting from 2010 when the majority of military personnel were discharged from the Armed Forces due to age limit. The transition continued in the following years, which involves the dismissal of one generation of military personnel who reached the prescribed age limit and the admission of a new generation. For instances, until the end of September 2023, the total of 501 employees were discharged from the MoD, while 225 new employees were hired.3 The dynamics of hiring new military personnel significantly impacts the expenditure on personnel.
Arms and equipment expenses are documented in the budget and balance sheets under the aggregated category Equipment procurement, without providing further details on types of procurement. The MoD initiated multi-year projects which include overhaul of helicopters (for instance, repairs and overhaul of Gazelle helicopters or procurement of spare parts for UH-1H helicopters) and purchase of specialized motor vehicles. However, additional funds for these projects were not provided in 2023.
