site.btaBulgarian Industrial Association Chair: State Budget Deficit Should Be 3%

Businesses expect the [proposed] regular government to speed up Bulgaria’s action towards the country’s accession to the euro area and Schengen, Bulgarian Industrial Association (BIA) Management Board Chair Dobri Mitrev said in a BTA interview. According to Mitrev, a regular state budget for 2023 must be adopted within two or three months, at most. Currently, Bulgaria uses public finances under its 2022 extended budget which expires on June 10, expecting a new budget extension for 2022 or a new budget for 2023.

In Mitrev’s words, the new state budget should be drafted in a way that brings Bulgaria as close as possible to the Maastricht criteria. There should be measures to reduce the deficit and inflation, including a reform of the public administration, whose numbers should correspond to the latest population figures. The state budget deficit should be set at 3%, there should be a reduction in capital spending, and the dividends from state companies should not be less than 80%, Mitrev said.

Another important task for the regular cabinet is to stimulate domestic and foreign investment. “We need to show entrepreneurs that Bulgaria can be a good place for investment, with a good business environment, reduced regulation and administrative burden, and that there is partnership and dialogue between businesses and institutions, Mitrev added.

According to BIA Chairperson, there is currently no need for compensation payments to businesses for high electricity prices. However, it would be nice for this safeguard measure to exist in case there is a surge in electricity prices again, Mitrev said.