The paper analyzes the realization of the fiscal deficit in the Republic of Srpska, with a particular focus on the role of fiscal responsibility at different levels of government. Special attention is given to identifying the structure of the deficit across various government levels, including local government units, social security funds, and the central government. The empirical data used in the analysis allow for an assessment of compliance with fiscal rules and the impact that each level of government has on the overall deficit. The study is conducted using a comparative analysis, which enables the evaluation of the influence of different government levels on deficit formation. The research results provide a basis for formulating policies aimed at strengthening fiscal discipline and responsibility. The paper contributes to a deeper understanding of the mechanisms behind fiscal deficit formation and allows for a more precise identification of areas for improving public finance management and ensuring fiscal stability. The findings also offer guidance for developing strategies that can enhance the efficiency of public expenditures and minimize the risks of long-term fiscal imbalances. Overall, the study bridges theoretical approaches with practical implications, facilitating better decision-making in the field of fiscal policy and the maintenance of fiscal stability.

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