Parliament Approves Cost-Cutting Budget 2016

Parliament Approves Cost-Cutting Budget 2016

MPs approved the state budget of the Republic of Bulgaria for 2016 at first reading. The bill was supported by 138 MPs. 65 voted "against" and 9 abstained. 84 MPs of GERB voted "for", 32 of the BSP were "against" with one abstention, 27 of the MRF "against", 19 of the Reformist Bloc were "for", 13 of the Patriotic Front "for" and 5 abstained, BDTS - 9 "for" and three abstained, Ataka - 4 "against", ABV - 10 "for", and of the independent MPs three "for" and two "against". Expectations are that the GDP will increase by 2.1% next year.
Revenues under the consolidated fiscal program in 2016 are forecast at 37.4% of the GDP, while expenses will increase by 2% to 39.4%. The end of this year marks the end of the 2007-2013 programming period, which was the reason for the update of budget 2015.
During the debate Minister of Finance Vladislav Goranov pointed out that stability, realism, and results are the words that sum up the philosophy of budget 2016. Toward November 17, 2015 the state collected BGN 1.7 billion more y/y.
The government plans to sell as much as 5.3 billion lev of debt next year, including foreign debt of as much as 3.9 billion lev, to cover the deficit and repay old debts, Goranov said. In March, Bulgaria sold 3.1 billion euros ($3.3 billion) in bonds on international markets. The budget draft envisages 2016 spending of 39.4 percent of output, while revenue is seen at 37.4 percent.
The cabinet sees economic growth of 2.1 percent in 2016 after a EU subsidies helped drive an estimated 2 percent expansion this year. Next year's average annual inflation is forecast at 0.5 percent, after estimated deflation of -0.9 percent in 2015. Unemployment will decline to 9.1 percent in 2016 from 9.9 percent in 2015, Goranov said.
 
StandartNews
Previous Next
Close
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.