Budget committee approves first set of fiscal rules amendments
Bulgaria's parliamentary budget committee approved on June 10 2011 the first reading of the amendments to the law on the structure of the country's state Budget, intended to set a limit of two per cent on the annual Budget deficit and 40 per cent on the Budget spending as a ratio of the gross domestic product (GDP).The changes also stipulate drafting a new mechanism for calculating the Budget balance to equalise it with the methodology of the European Union.The amendments already have the backing of the centre-right Blue Coalition.The approved changes represent the first part of the fiscal stability measures proposed by Finance Minister Simeon Dyankov. The package needs to win simple majority of 121 MPs to come into force.The second set of rules envisions amending the constitution, with each proposed change to direct taxation rates requiring a parliamentary majority of two thirds, or 160 MPs.During the parliamentary discussions, Dyankov said that if passed, the amendments would prove that Bulgaria was different from its neighbours which lack financial stability. (Source: The Sofia Echo)