16.07.2012

The country\'s macroeconomic and financial stability has been preserved.

The ECOFIN Council has officially terminated the excessive deficit procedure against Bulgaria since the country cut its deficit below the reference value of 3% of GDP in accordance with the Stability and Growth Pact.

Bulgaria is one of the three EU members implementing the numerical criteria for euro zone membership.

In July 2011, Moody\'s Investors Service upgraded Bulgaria\'s rating to Baa2 stable from Baa3 positive.  

In a climate of global financial and economic crisis and with a debt-to-GDP ratio of 16.3% as of end-2011, for a third successive year Bulgaria is ahead of all EU members except Estonia. By maintaining one of the lowest debt-to-GDP ratios in Europe and containing its budget deficits, Bulgaria has consolidated its status as one of the most stable debt issuers in the region.

Bulgaria made an impressive return on the international capital markets after a 10-year absence. The country issued successfully 5-year bonds to the amount of EUR 950 million at an interest rate of 4.25%.

MoF\'s priority is to galvanize investment activities and develop a favourable business climate by refining the taxation policy and eliminating the tax hurdles to investment. The income tax is 10% and is four times lower than the EU average. Bulgaria, along with Cyprus, enjoys the lowest corporate income tax of 10% against an average 23.5% in the EU.

In the period 2010-2011, the Ministry of Finance launched a software project for overall automatisation of the processes of administration of local taxes and fees delivered free of charge to municipal administrations. This software meets the targets of the Ministry of Finance for reducing cash payments, and may process payments through point-of-sale terminals. 

The effectiveness and efficiency of the revenue administration and the financial inspection have been substantially improved. Among the measures aimed at improving state receivables are: increasing the number of on-the-spot tax inspections; improving the mobile teams\' work; conducting more frequent and comprehensive audits and financial inspections; and introducing more rigid accounting rules and prosecution of revenue defrauding practices.

The administrative burden for clients has been reduced through the electronic exchange, control and support of information, with the information filed or generated in a one-off manner by persons being used by another administrative user.

A new Gambling Law has been passed and has become effective. It meets all modern practices and regulates online betting.

The European Commission has given a positive compliance grade of the management and control systems of EU-funded programmes. During systems audits, the Audit of EU Funds Implementing Agency has assessed the effectiveness of the management and control systems of all MAs, IBs and CAs.

Payments under SCF-funded operational programmes have increased 8 times as of mid-2012 in comparison with the source data as of end-2009. Over 24% of the programme budgets have already been disbursed compared to 2.5% of the payments made as of 31 December 2009. The SCF expenditure certified and approved by the European Commission amount to 17.4% of the OP budget.

The Ministry of Finance has participated actively in the elaboration of EU policies of common interest, as well as in the legislative process of the EU budget. The following strategic documents have been drafted: National Reform Programme of the Republic of Bulgaria (2011-2015) and its update for 2012, National Reform Programme (2012-2020), Convergence Programme of the Republic of Bulgaria (2011-2014) and Convergence Programme of the Republic of Bulgaria (2012-2015) in accordance with the requirements of Regulation No 1466/97/EU.

Bulgaria has been represented in all managing bodies of the international financial institutions and has actively stated its positions and proposals with regard to their activities, strategic papers and decisions.