A consultative council that brings together Government, employers and labour unions, supported on May 25 the Cabinet's Budget revision plan that envisioned a 4.8 per cent deficit for 2010.
The Budget revision bill, expected to be tabled in Parliament no later than the first week of June, envisioned a 20 per cent cut in the public administration spending and 15 per cent cut in Budget transfers to local government.
The funding cut to municipalities was higher than the initially-envisioned 10 per cent and prompted an immediate reaction from Dora Yankova, the head of Bulgaria's association of municipalities: "Local government will not accept this and we will seek discussions with the Cabinet. We will ask that the commitment for a 10 per cent cut is honoured."
In absolute terms, municipalities would receive 138 million leva less, which would leave them unable provide social and health care services at a local level, she said.
The revised Budget deficit of 3.2 billion leva was caused by a shortfall of two billion leva in revenues, as domestic consumption would remain low and an envisioned economic recovery would be led by an increase in exports, according to a report by Reuters, which said that it saw the draft revision bill.