At the Council of Ministers, Ministers Lidiya Shuleva, Nikolay Vasilev, and Milen Velchev met reporters. The meeting deals with the measures Simeon Saxe-Coburg marked as the most efficient for ensuring implementation of the government programme.
The government is expecting the package of tax and social measures, published yesterday by Prime Minister Simeon Saxe-Coburg, to lead to a significant increase in investments, accelerate economic growth, and create new jobs.
Budget wages will not be increased on 1 October because inflation is lower than that initially incorporated in the national budget, and consequently, real income has not decreased, Deputy Prime Minister and Minister of Labour and Social Affairs Lidiya Shuleva explained.
Finance Minister Milen Velchev added that the increased percentage of budget revenue envisaged in the agreement with the IMF, is not a problem, because the agreement has already expired. In the meantime, it became clear that the IMF was warned in advance, and has not opposed reducing taxes and increasing certain groups of incomes. According to Minister Milen Velchev, the calculations of the Finance Ministry suggest that, as a result of the reform, tax revenues will decrease by almost 500m leva. The savings resulting from cuts in the state administration, decreases in capital expenses, and restructuring of other state budget expenditures are expected to amount to the same sum. Minister Velchev is expecting a significantly higher income from customs and fees and a higher percentage of taxes collected. Additional credit for our payments balance will not be requested. According to the finance minister, next year the budget deficit could amount to zero.
Deputy Prime Minister Nikolay Vasilev is expecting 5-per-cent economic growth in 2001. According to him, 10-per-cent growth would be ideal. The 10-per-cent increase in heating and electric power will apply both to companies and citizens, and will encompass both the day and night rates for electricity.

A Bulgarian National Radio Report

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