Bulgaria's Government to Discuss 2011 Draft Budget

Bulgaria's Government to Discuss 2011 Draft Budget

Pensions and salaries in Bulgaria will not be changed in 2011, the Finance Ministry's draft 2011 State Budget Act says.

The draft budget, which will be discussed Wednesday, envisions that the deficit in the end of 2011 would be 2,5%, while the economic growth is expected to be 3,6%.

The expenses in some of the key sectors, like education and health care, will remain at their 2010 levels.

"The budget for 2011 will not be very different than the budget for this year," said Sergey Ignatov, Bulgaria's Education Minister.

Employers would have to continue paying 70% of the daily salary for the first three days of the sick leaves of workers.

"According to data from the National Insurance Fund, this measures saves about BGN 5 M to BGN 7 M per month. The Social Ministry has decided that this was a good measure and this is why it was included in the draft budget," said Finance Minister Simeon Dyankov.

According to the draft budget, Bulgaria's GDP will grow to BGN 77 B. The financial analyst, Lyubomir Datsov, has stated that this forecast is unrealistic for two reasons.

"The first reason is the lack of any foreign investments or the possibility for their growth to more than an average of BGN 1,8 B per year, which is still completely insufficient. The second reason is that there will be no stimulus for domestic investments. So this growth of the GDP will rely only on recovery of some consumption, but how exactly would this recovery happen, they do not explain," he said.

On Tuesday, Bulgarian business organizations and syndicates supported the government's proposal for tax changes, including the introduction of a flat 9% value-added tax (VAT) in the tourism sector.

Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.