01.07.2013

The Minister of Finance Petar Chobanov presented three groups of measures aimed at improving collection and optimization of the work of the revenue administration at a briefing given at the Ministry of Finance. The first group of measures refers to the single tax insurance account, with an analysis to be made of all the problems related to its practical implementation. He added that the second group of measures concerned a reduction in the volume of documentation required by the National Revenue Agency and the national Customs Agency upon making audits and inspections. The third group of measures refers to the optimization of the work of the revenue administration through the implementation of existing statutory options for payment of arrears, for instance deferral, rescheduling and urgent payment, the Minister added.

We have found problems with the planning of budget revenue and expenditure this year, said Minister Chobanov in response to a question raised. He added that currently there were no reserves in the central budget, which necessitated its update. Another problem linked to the lack of any fiscal policy cushions is \"the issue of BGN 800 million made urgently in February\" this year. These resources have already been refunded by the European Commission and the issue will be repaid in August but \"these BGN 800 million have depleted the flexibility\" of the newly issued debt. The Finance Minister pointed out that the budget update would be made in such a way so as to \"observe the EU rules and avoid running to extremes with regard to the budget deficit\".

Mr. Petar Chobanov also said that \"what the revenue agencies gave as budget performance projections differs to a great extent to the projections of the Ministry of Finance for revenue collection\". \"From the excise duty data we currently have we actually see a reduction in the excise duty revenue. The Customs Agency expected an underperformance of BGN 450 million. It is evident that the plan will not be performed\", emphasized Minister Chobanov. The budget update is also aimed to find options for reimbursement of the businesses\", he added. The Finance Minister said that the limits of the ministries for some types of expenditure were reduced by 5% as from 1 July, which would supply a cushion of around BGN 60 million.

Minister Chobanov confirmed that there was mutual agreement on the discharge of the Director of the National Customs Agency Mr. Vanyo Tanov as from 1 July. This will become a fact as soon as Mr. Tanov\'s physical condition improves.