Bulgarian Council of Ministers Approves Budget 2016 - GDP Growth Expected at 2.1%
Monday, 02 November 2015
The Council of Ministers approved Bulgaria's draft budget for 2016. The government set a new BGN 300 poverty treshold, which is 14 levs more than this year.
With stability to growth
The main priority of the fiscal policy in the medium term remains the desire to preserve the stability of public finances, the approved draft states.
The expectation for the 2016 GDP growth is 2.1%. The draft expects maintaining relatively stable levels of growth in 2017 and 2018, at 2.5 % and 2.7% respectively.
For the period 2016-2018, the revised target for the deficit under the consolidated fiscal program (CFP) in 2016 is 2% of the GDP with 2.5% of the GDP for 2016. In the medium term target remains to reduce the deficit by 0.5% of the GDP annually.
The planned deficit for 2017 and 2018 respectively are at levels of 1.4% of the GDP and 1% of the GDP.
Based on the assumptions and projected net debt financing for the period 2016-2018, the ratio of government debt to the GDP forecast is expected to be about 28.9% at the end of the period.