07.07.2013

Fiscal stability remains a priority but not in the way the previous government understood it, Minister of Finance Petar Chobanov stated in an interview for the National Radio Program Nedelya 150 (Sunday 150). This end in itself led to suppression of a number of sectors, there was no long term investment policy and that deepened the problems as a result of which we lost 400 thousand jobs and many micro-enterprises. Nevertheless, the state of public finances worsened by almost BGN 8 billion - by BGN 4 billion of the fiscal reserve and by BGN 4 billion additionally issued debt, the Minister of Finance specified. Petar Chobanov noted that new elections would retreat the country from important reforms that had been started and there was a lot to be done yet.

Among the reasons defined by the Minister of Finance as basic for undertaking budget revision are the revised forecast for economic growth, the lack of buffers that have been redistributed at the beginning of the year, and the expected underperformance of revenues by BGN 1 billion. Another reason for undertaking this action is the preparation of the budget for next year as the grounds on which it would be built should be clear.

Chobanov specified that it was discussed the deficit to reach 2% at the end of the year after the budget revision and there was nothing to be concerned about as its nominal amount would not be BGN 1 billion but difference in the deficit of BGN 500 million. The revision will reflect the lower revenues \"whose target will not be reached anyway\". The Finance Minister added that the Maastricht criteria would be observed. He stated that the money would be used to pay the businesses and not for social measures as suggested. Official data show that the State owes the businesses BGN 100 million and measures are being taken at the moment to refund VAT more effectively.

The Finance Minister further commented the measures to improve revenue collection, the money of state owned enterprises in private banks, and personnel changes in the Customs Agency and the NRA.