Finance Minister Vassilev: Budget Is Well Balanced and Mainly Directed towards Investments and Increasing Incomes

Desislava Toncheva

Finance Minister Assen Vassilev in Parliament on Monday(BTA Photo)

Sofia,

11.12.2023 17:22

(BTA)

Finance Minister Assen Vassilev presented the 2024 draft state budget to MPs on Monday during its first reading discussion in Parliament. The budget is well balanced and is mainly focused in two directions - investments and increasing incomes, said Vassilev.

He noted that this budget has record investments of almost BGN 10 billion. In addition, there is an income policy, which, on the one hand, is in sync with the existing legislation (the minimum wage will become BGN 933) and on the other hand, it is quite ambitious, Vassilev pointed out. The envisaged wage growth in both the public and private sectors will be around 11%, i.e. just over twice the rate of inflation, he noted.

The budget was calculated with a deficit of 3%, which allows Bulgaria to remain in the Maastricht criteria and actually fulfill the criteria for membership in the Eurozone, the Finance Minister also said. The budget is calculated with a growth of the gross domestic product (GDP) of 3.2% in 2024 and 1.8% by the end of this year, which, Vassilev pointed out, means that next year's GDP will be BGN 205 billion.

Average annual inflation expected for next year is 4.8%. Looking at how inflation has moved in the last two months, it is quite likely that it will be below this 4.8%, but a more conservative forecast is set in the budget, Vassilev pointed out.

/DT/