18.07.2013

\"We have enough evidence that the provided for revenue side of the budget will not be implemented. In addition the budget planning is not good enough and the budget lacks flexibility. These are the main reasons underlying the budget revision proposed by us\", Minister of Finance Petar Chobanov commented during his meeting within the scope of a Public Council with representatives of the nationally representative employer and trade union organizations. We will keep the deficit within the legally binding ceiling of 2% of GDP and we will observe the EU rules, the Finance Minister added. The foreseen ceiling of the newly issued debt of BGN 1 billion is a budget option and we will not necessarily avail of it, the Minister specified. The measures taken by the MoF to improve revenue collection and ease the administrative pressure on the businesses are already in progress. In a comment on the State liabilities to companies Minister Chobanov said that in the period 1 - 12 July the NRA refunded BGN 455 million VAT to businesses of which BGN 60 million to 1 215 SMEs.

The CITUB President Plamen Dimitrov supported the proposed budget revision and presented to Chobanov their proposals for an additional social package of seven measures for the most vulnerable groups of the population and recommended harnessing the contraband in order excise revenues to be increased.

Nikola Zakatanov of the Bulgarian Industrial Capital Association commented that they understood the motives for the budget revision but the organization insisted that resources should be focused on growth and new jobs.

The Bulgarian Industrial Association, represented at the meeting by Dimitar Brankov, reminded Minister Chobanov their opinion of October last year prepared for the discussions on the 2013 budget. They think that it is still relevant now. BIA also expressed support for the budget revision but they stood by the principle \"deficit for reforms\" and called for that the main focus should be on employment and the programmes for subsidised employment for those starting and ending their career.

Tsvetan Simeonov from the Bulgarian Chamber of Commerce and Industry expressed the opinion that the redistribution role of the State should not be increased, neither should debt, but they supported the start of repayment of the State liabilities to businesses and the measures proposed to improve revenue collection.

Kamen Kolchev from the Confederation of Employers and Industrialists in Bulgaria expressed the position that the budget revision should ensure flexibility, but not an opportunity for more spending. He is for reforms within the revenue administrations and for effective communication between the different state control bodies. The CEIBG is of the opinion that the measures announced by the MoF regarding revenue collection are good, but they would be only cosmetic, if the problem with contraband of excise goods is not tackled or the shadow economy not reduced. The CEIBG proposed to change the principle of state ownership management by intruding the public-private ownership mechanisms.

All participants in the discussion emphasized the need to accelerate the convention of a National Tripartite meeting in order to solve topical social issues such as the proposals of the trade unions to increase the minimum salary.