The Parliament of Bosnia and Herzegovina is the country's legislative body, consisting of two chambers: the House of Representatives and the House of Peoples. It is responsible for making laws, approving the budget, and overseeing the government. The Parliament meets in Sarajevo, the capital city, and plays a crucial role in the political system established by the Dayton Agreement. Members are elected through a proportional representation system, ensuring that various ethnic groups are represented in the legislative process.