Bulgaria’s Govt to Submit New Budget Update Proposal

Business » FINANCE | November 10, 2014, Monday // 15:47
Bulgaria: Bulgaria’s Govt to Submit New Budget Update Proposal Bulgaria's Council of Ministers building, photo by BGNES

Bulgaria’s government will submit a new budget update proposal, withdrawing the one tabled by the caretaker government.

Finance Minister Vladislav Goranov has invited representatives of the social partners to a meeting on Tuesday to discuss the new budget update proposal, according to reports of the Bulgarian National Radio.

The new Cabinet says it has made two improvements, including one concerning fiscal consolidation and one involving additional changes in the context of the revoked license of Corporate Commercial Bank (KTB).

The new bill is aimed at shrinking the deficit projection.

The projected revenue shortfall in the state budget stands at BGN 1 061 800, which is 1.3% of the projected GDP.

The most serious problem is the shortfall at the Interior Ministry.

According to the analysis, there is no opportunity for optimizing or cutting costs of the Interior Ministry in order to cover the shortfall.

Bulgaria’s Interior Ministry needs an additional sum of BGN 125 700 million, including BGN 110 million in expenses on staff.

The Ministry of Labor and Social Policy faces a shortfall of BGN 50 million, the Health Ministry needs an extra sum of BGN 24 million, and the Regional Development Ministry and the Agriculture Ministry report deficits of over BGN 16 million.

The Supreme Judicial Council (VSS) reports a deficit of BGN 10 million, while the Justice Ministry asks for an additional sum of BGN 5 million.

The new budget update proposal has been downsized by over BGN 50 M from the rate envisaged in the plan of the caretaker government.

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Tags: Bulgarian government, caretaker government, budget update, finance minister, Vladislav Goranov
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