31.01.2013

The Public Finance Law adopted expresses the intentions of the Government for a wide reform in the medium term budget framework to address the existing weaknesses and support the ongoing fiscal consolidation processes.

• The Public Finance Law is a natural continuation of the Financial Stability Pact and is following up the Audit Office recommendations.
• The Law provides that the annual consolidated fiscal programme budget deficit on a cash basis should not exceed 2% of GDP.
• It further provides that the medium term budget target for structural deficit of the general government on an annual basis should not exceed 0.5% of GDP.
• The Law summarises the national fiscal rules applicable to the general government both at central and local level.
• The Law focuses on strengthening the interaction among the legislative, the executive, the judiciary and the municipalities with the aim of observing common limitations, rules and procedures to achieve the fiscal policy objectives while ensuring the autonomy of the budgets of the three powers.
• Provisions for accounting and statistics of public finances in accordance with the Eurostat methodology are introduced.
• After the passing of the Law the Organic Budget Law and the Law on Municipal Budgets are to be repealed and dozens of other laws to be amended accordingly.
• The Law must enter into force as of 2014 and the budget procedure for the drawing up of the budgets and the estimates for the EU funds for 2014 will be carried under the rules of the new law.
• The Public Finance Law will ensure the desired continuity of the fiscal policy implemented and will guarantee nationally and internationally that Bulgaria will maintain budget discipline.