site.bta2016 Budget Deficit Likely to be Less Than 1% of GDP - Finance Minister

2016 Budget Deficit Likely to be Less Than 1% of GDP - Finance Minister

Sofia, September 16 (BTA) - The Finance Ministry is seeking to achieve a budget deficit of less than 1 per cent of GDP this year, Finance Minister Vladislav Goranov said at Parliament's Question Time on Friday.

He was answering a question about a possible cut in the cash-based budget deficit, projected at 2 per cent of GDP.

The budget was in a surplus of 3,300 million leva (3.7 per cent of GDP) at the end of August, compared to 662 million leva a year earlier. The budget position improved by 3 percentage points, said Goranov.

He added: "Our ambition is to consolidate the positive trends. A deficit of less than 1 per cent will make it possible for much of the resources earmarked for financing of the deficit to be saved in the fiscal reserve for public debt service payments in 2017. If these results continue, the Finance Ministry may decide not to issue new debt in 2017."

Asked if the 2016 budget can be balanced, Goranov said it was still early days. He stressed that the budget's expenditure side would not be changed until the year's end and all the surplus revenues would go towards deficit reduction. This means that despite the risks until the year's end, the deficit will be less than 1 per cent of GDP and Bulgaria will be close to a balanced budget, he said.