Send to Kindle
Bulgaria’s FinMin Simeon Djankov is pictured here next to a photo of a meatless pizza, which he famously used as a metaphor for the austerity 2010 budget. Media have described budget 2012 as a meatless pizza too, but even without olives. File photo
Bulgaria aims to have a budget deficit of 1.35% of gross domestic product, a growth of 2.9% and inflation of 2% in 2012, according to the budget draft for next year.
"In nominal terms, the 2012 budget resembles the 2011 budget," Finance Minister Simeon Djankov told reporters after the cabinet discussed the draft on Monday.
Djankov stressed that more money have been allotted for science and justice, while the budget for security agencies have been cut. He expressed the hope that bringing down the budget deficit will shield the economy from the blows of the European debt crisis.
The government may sell up to EUR 1.0 B in bonds on the international markets next year to finance a bond that matures in early 2013.
It plans to issue BGN 1.2 B on the domestic market.
The government is expected to approve the budget on October 31 after discussing it with the trade unions. After the cabinet gives it the green light, it will be tabled for debates in parliament.
Two years ago Bulgaria’s finance minister Simeon Djankov famously used a meatless pizza as a metaphor for the austerity 2010 budget. Local media have described budget 2012 as a meatless pizza too, which is however even not decorated with olives.
In the middle of October Bulgaria's government sharply revised downwards its economic growth forecast for next year from 4,2% to 2,5%, citing the slow-down in Western Europe and in particular Germany, the country's biggest trading partner.
Driven by strong exports, as well as the good performance of the industry and services sectors, the Bulgarian economy has started to expand, but too weakly and unsteadily.
The economy expanded by 2% in the second quarter on an annual basis, down by 1.4% in comparison with the previous quarter, which marked the first considerable increase in economic growth since the country plunged into a recession. The seasonally adjusted GDP edged up by 0.3%.
The government expects this year's growth to be 2.8%.
The International Monetary Fund recently downgraded its forecast for the 2011 growth of the Bulgarian economy to 2.5% from a projected 3% estimate made at the beginning of the year.
Meanwhile the European bank for Reconstruction and Development (EBRD) lowered its annual economic growth forecast for Bulgaria from 3.1% to 2.3% in 2011.
Bulgaria’s retailers are increasingly facing an unusual but growing challenge – customers arriving with jars full of small coins to pay their expenses
As the clock strikes midnight and Bulgaria welcomes 2026, the country will also enter a historic financial shift - the beginning of its transition to the euro
The Bulgarian government has tightened security measures around Lukoil’s strategic facilities across the country
The new week in Bulgaria will begin under cloudy skies and widespread rainfall
Small and medium-sized enterprises in Bulgaria are expected to face the greatest difficulties once the euro becomes the country’s official currency in 202
New research shows that the cost of ski holidays across Europe has climbed by almost 35% above the inflation rate since 2015
Over the past five years, Bulgarian households have seen their savings lose more than 40 percent of their real value as inflation steadily eroded purchasing power
The Bulgarian National Bank has presented informational materials introducing the design of Bulgaria’s euro coins
Deputy Governor of the Bulgarian National Bank (BNB) Assoc. Prof. Petar Chobanov stated that Bulgaria’s forthcoming adoption of the euro will transform not only the country’s financial system but also its position within Europe
Bulgarian economist Viktor Papazov, a Harvard graduate and one of the founders of the Bulgarian Stock Exchange and the Central Depository, has delivered a stark warning about Bulgaria’s adoption of the euro
Bulgaria’s first budget in euros has sparked strong criticism from economists and opposition politicians, who describe it as the worst financial plan in more than twenty-five years
In the first nine months of 2025, commercial banks in Bulgaria reported a total profit of 2.8 billion leva (approximately 1.43 billion euros)
Bulgaria's Strategic Role in the EU's Drone Wall Defense Initiative
When Politics Means Violence
