Bulgaria's PM: Budget Update Not Necessary So Far
The fiscal performance in the first half of 2014 does not require an update of the state budget, according to Bulgarian Prime Minister Plamen Oresharski.
Oresharski announced Monday on Facebook that the risks Bulgaria faced by end-2014 were manageable.
He made clear that he expected better revenue collection in the second half of 2014 due to the introduction of the reverse VAT charging mechanism and the mobile fiscal control mechanism launched in the beginning of 2014.
Oresharski also explained that there were buffers in the expenditure part of the budget.
"However, taking into account the complex political situation, the agreement achieved between the political forces on the matter, and the upcoming change of governments, one of which will function without a Parliament, we proposed a budget update option which strengthens buffers, in order to avoid increased pressure. We discussed such an approach during the political consultations at the President's office," he stated.
Bulgaria's Prime Minister explained that the revenues in the first six months of 2014 amounted to around 46% of the forecast, reaching a similar rate to the ones from the past 4 years, from 2010 to 2013.
He also noted that the budget deficit in H1, 2014 was higher than the rate registered in the same period of the last few years, stressing that the difference was solely due to the expenses incurred for the advance financing of EU-funded projects.
Oresharski assured that the situation would improve substantially over the next one or two months, when the European Commission was to reimburse Bulgaria for the expenses.
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