FinMin Goranov Vows to Avoid Overdoing Fiscal Consolidation
Monday, 01 December 2014
The government will do its best to boost investment and consumption while maintaining fiscal stability, Finance Minister Vladislav Goranov said on Sunday.
Commenting on the GERB-led coalition government’s plans to boost budget revenue, Goranov vowed there will be no increase in Value Added Tax, currently set at 20%.
“We’ll make every effort possible to use fiscal instruments … to increase investment and consumption,” Goranov told BNR radio station, adding parliament will work extra hours to have the 2015 budget adopted by January 1.
The government’s budget draft for next year projects deficit equivalent to 3.0% of GDP, lower than the shortfall of 3.7% expected this year. Budget revenue is projected at 36.8% of GDP and expenditure at 39.8%.
Goranov said earlier this week Bulgaria’s economy is expected to grow by 0.8 – 1.0 percent in real terms next year “which, together with some measures to improve collection - especially in regard to excise duties, will lead to around 300-400 million levs more tax revenues in 2015 compared to 2014".