Parliament Passes 2013 Budget Update, Raises Budget Gap

Bulgaria's parliament adopted on Thursday an update to the state budget for 2013, increasing the fiscal deficit to 2.0% of the projected gross domestic product (GDP) from 1.3% of GDP to reflect projected revenue shortfalls and expenditure overruns.

The revised budget provides for an additional 160.4 million levs ($108.6 million/82 million euro) in payments to the business, parliament said in a press release. A further 40 million levs will go to support the most vulnerable social groups.

Revenue is set at 18.2 billion levs, including 16.08 billion levs in tax proceeds.

The budget revision provides for borrowing up to 1.0 billion lev, to be used as a buffer for the fiscal reserve to offset possible liquidity risks in 2014, when Bulgaria must make new payments on its foreign debt.