13 Municipalities are Facing Bankruptcy, 49% of the Spending goes to Salaries

Politics » DOMESTIC | March 14, 2018, Wednesday // 15:30| Views: | Comments: 0
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Bulgaria: 13 Municipalities are Facing Bankruptcy, 49% of the Spending goes to Salaries Archive

13 municipalities are in a difficult financial condition, according to data from the Ministry of Finance at the end of 2017. These are only 4.9% of all municipalities in the country, as there is a tendency for better money management.

A year ago, 32 municipalities, or over 12% of all, met three or more of the criteria for their classification as financially unsatisfactory municipalities.

The 13 municipalities, which currently have difficulties, are Simitli, Strumyani, Belogradchik, Gramada, Dimovo, Kocherinovo, Rila, Sapareva Banya, Septemvri, Pernik, Nedelino, Chepelare and Stambolovo. They will have to take financial recovery measures such as raising their revenues or shrinking their costs.

These measures must be approved by the Minister of Finance Vladislav Goranov, if the municipalities want to take a non-interest-bearing loan from the state budget. Municipalities that drop out of the list for financial recovery in 2018 are 21.

The rescue measures adopted by them have produced positive results, the MoF said. Data for all municipalities in the country show that 49.39% of their costs go to wages and social security contributions, and investments are 12.35% of their spending.

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