Bulgarian Finance Minister Petar Chobanov has assured that the proposed budget update will not impair the fiscal stability of the country.

Speaking Tuesday at a joint sitting of the parliamentary committees on budget and finance and social and economic policy, he was adamant that the new debt would not be used to finance shady costs or to support a circle of companies closed to the government.

Chobanov, as cited by the 24 Hours Daily, noted that the budget update would act as a kind of buffer earmarked for meeting additional costs in 2014.

He explained that the debt ceiling of BGN 14.6 B would be retained after the revision.

Bulgaria's Finance Minister claimed that the new borrowing was necessitated by the diminishing flexibility of the budget over the past few years.

He made clear that the step was not a mere technical update but signaled a new financial policy of the government.

Chobanov argued that Bulgarians had to become clear about whether the center-right GERB government had managed to create stability.

"If stability means not paying the business sector on time, untimely recovery of VAT, and an undisciplined fiscal policy, then, yes, we had stability," he stated.

He noted that the budget revision made it possible for the state to be a good partner to businesses both in terms of contracts and legal provisions.

Bulgaria's parliamentary committees on budget and finance and social and economic policy are currently holding a joint sitting on the project which was adopted at an extraordinary meeting of the government on Monday.

The budget update envisages increasing the deficit by around BGN 500 M and increasing the borrowing limit by BGN 1 B.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!