Bulgaria is threatened with bankruptcy. There is a serious problem in maintaining fiscal stability, Novinite reports.
There is a risk of a change in the existing exchange rate of the leva against the euro. Our accession to the Eurozone has to be postponed indefinitely. Borrowing from the IMF may be necessary to save fiscal stability. This will impose serious financial restrictions. In this situation, income will be frozen.
These are just some of the serious problems Bulgaria is facing. They are contained in a report by the Acting Minister of Finance Rositsa Velkova-Zheleva, writes BGNES.
Her remarks are regarding a draft protocol decision of the Council of Ministers to approve parameters, assumptions and measures for the development of a draft Law on the State Budget of the Republic of Bulgaria for 2023, an updated medium-term budget forecast for the period 2023-2025 as reasons for it and medium-term budget forecast for the period 2024-2026.
“The estimates developed by the Ministry of Finance show that, if the policies adopted in 2022 are kept in effect and the fiscal effects of the regulations that came into force predetermining revenues and expenses are reflected, the full-year effect for 2023 implies a significant deterioration of the budget balance of the ‘Public Administration’ sector in the amount of 6.9 percent of GDP, which the Ministry of Finance signaled as early as August last year,” warned the Minister of Finance and added that this was the result of the political measures taken by the last few Parliaments.
She emphasizes that as a result of the measures that were taken by the 47th National Assembly, which elected the government with Prime Minister Kiril Petkov and Finance Minister Asen Vasilev, “the year-round effect of the implementation of these policies and the displacement of unrealized investment costs lead to a significant increase of budget expenditures for 2023 and in the medium term the deficits are again in the order of 6-7% of GDP”.
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