site.btaNational Audit Office Finds Considerable Increase of Municipal Debts in 2014

National Audit Office Finds Considerable Increase of Municipal Debts in 2014

Sofia, January 10 (BTA) - The National Audit Office said Tuesday it has found a considerable increase of municipal debts in 2014.

In 43 municipalities the debt increased by more than 50 per cent compared to 2013 and in 35 the increase was by more than 100 per cent.

Twelve municipalities saw the shocking debt growth of over 500 per cent: Kameno, Karnobat, Suvorovo, Roman, Assenovgrad, Rakovski, Rhodopi, Sopot, Dve Mogili, Kostinbrod, Madjarovo and Toundja.

At the end of 2014, 82 municipalities had no municipal debt.

The audit found that the ratio between the municipal debt payments and own revenue in 2015-2017 was over 30 per cent in 56 municiaplities, over 100 per cent in 14 municipalities and over 200 per cent in three municiapalities: Malko Turnovo, Bobov Dol and Nikopol. Even a ratio of 30 per cent is conducive to higher deficit in munucipal budgets, the National Audit Office said.

The ratio is expected to be over 30 per cent in 16 municipalities in 2016 and five municipalities in 2017.