site.btaFinance Minister: 2015 Budget Is the First Step towards Stable and Realistic Budget

Finance Minister: 2015 Budget Is the First  Step towards Stable and Realistic Budget


Sofia, December 8 (BTA) - Addressing an extraordinary meeting of
 the legislature held to discuss in principle the national
budget for 2015, Finance Minister Vladislav Goranov said that it
 is the first step towards a stable and realistic budget.
Presenting the budget bill, he said that its top priorities are
policies ensuring financial stability and gradual financial
consolidation.

Goranov underscored the importance of efficient management of
the EU funding. 

He said that the global economic projections are unfavourable.
There is a risk for an extended period of low inflation and even
 deflation in the euro zone. In Bulgaria, the GDP growth is
expected to slow down to 0.8 per cent due to low internal demand
 before picking up speed in the next couple of years. The slow
inflationary processes will bring about a lower nominal growth
of the national economy, the Minister said.  

In 2015, unemployment is expected to drop to 11.7 per cent.

The updated medium-term budget forecast envisages an increase of
 the minimum wage by 20 leva to 360 leva from the start of next
year, by another 20 leva from mid-2015, by 40 leva from January
1, 2016, and then again by 40 leva from January 1, 2017.

In 2015, all EU-funded operational programmes for the 2007-2013
period will be in their final phase and intensified payments are
 expected for all.

The proposed budget also envisages a deficit of 3 per cent,
unchanged tax, social and medical insurance burden and taking
out a new debt of 8.1 billion leva in 2015.

It proposes an increase of the tax on the income from bank
deposits to 10 per cent from the effective 8 per cent and
broadening of the type of deposits to which this will be
applicable (now it is only charged on savings deposits).

This proposed tax increase did not get the support of the
parliamentary budget committee and it remains to be seen how the
 plenary will vote.

The revenue side of the budget is set at 36.8 per cent of GDP
and the expenditure side at 39.8 per cent of GDP with unchanged
tax policy.

The government debt is set to grow to 24.5 billion leva at the
end of 2015 making a debt-to-GDP ratio of 29.7 per cent.

Emerging from a meeting with the leadership of the GERB group
and the chair of the parliamentary budget committee, Menda
Stoyanova, Confederation of Independent Trade Unions in Bulgaria
 leader Plamen Dimitrov said that the unions' plans for a
protest on December 11 over the proposed budget remain
unchanged.

Dimitrov explained that the unions and the government have yet
to decide how the pensionable age and length of service will
increase over time. "We have agreed to have a week of busy work
with the participation of all political forces in Parliament in
order to have a formula for consensus before the 2015 budget is
put to conclusive voting," the union leader explained.