Bulgaria’s FinMin Sets 1.8% GDP Growth in 2014 Budget Draft
Thursday, 24 October 2013
Bulgaria’s finance ministry sets the country's economic growth at 1.8% next year in the draft state budget, it said on Wednesday.
"Achieving accelerated economic growth is the main goal of the policies underlying the draft state budget act of the Republic of Bulgaria for 2014," the finance ministry said in a statement. "To achieve this goal, a balanced approach should be applied to certain key industrial growth factors such as the existence of qualified human capital, basic infrastructure, technological knowledge, and their effective use."
In the draft state budget the finance ministry projects that the county's gross domestic product (GDP) will grow to 81.58 billion levs ($57.44 billion/41.71 billion euro) next year.
EU-harmonised annual inflation in 2014 is seen at 1.8%.
“The 2014 draft budget implements a policy of encouraging economic growth in the medium term, and changes the macroeconomic model imposed in the past years of containing growth through fiscal policies,” the finance ministry said.
The budget deficit is estimated at 1.47 billion levs, or the equivalent of 1.8% of the projected GDP.
Revenues are expected to increase by 501 million levs to 30.88 billion levs, or 37.9% of the country's GDP. Expenditures are set at 32.35 billion levs, or the equivalent of 39.7% of the country’s GDP, an increase by 380 million levs compared to 2013.
Bulgaria's state debt is expected to amount to 18.0 billion levs, up by 3.4 billion levs from the expected level at the end of the current year. It will shrink considerably in the beginning of 2015 when Bulgaria is due to pay 1.7 billion levs on US-dollar denominated bonds issued in 2002.
The fiscal reserve will remain unchanged at 4.5 billion levs by December 2014.