Bulgaria Cabinet Expands End-of-year Spending Spree to BGN 1 B

Politics | November 23, 2007, Friday // 00:00

Bulgaria's cabinet will go on an end-of-year spending spree of BGN 1 B, taking the money from the budget surplus to finance new transport and environmental infrastructure, as well as for ongoing investment projects.

The cabinet initially asked for BGN 570 M, but at a meeting with the parliament's budget committee the finance minister Oresharski has asked the MPs to approve increasing the expenditure to BGN 700 M, given the robust revenue collection.

The committee has approved the ministry's proposal, although the MPs have demanded a list of specific projects on which the money would be spent.

Oresharski also dismissed the worries that the sudden inflow of so much money into the economy would create further inflationary pressures.

Inflation for this year is expected to reach 10%, a six-year high.

Additionally, the government can spend up to 1,5% of planned revenue from the surplus without asking the parliament's approval, which comes up to another BGN 300 M.

A chunk of that money will be spent on addressing commitments undertaken by Bulgaria when it joined the EU, such as setting up emergency centres for monitoring all distress calls and boosting the country's crude oil reserves.

The cabinet also plans to extend some funding to local administration as interest-free loans.

Bulgaria's budget surplus for the first nine months of the year reached a record BGN 3,05 B, data released by the country's cabinet earlier this month showed.

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