02.11.2011

The 2012 draft budget proposed to Parliament is the best possible one and this has been acknowledged by the European Commission as well. We have provided enough cushions in case the crisis in the euro area deteriorates. This is what the Deputy Prime Minister and Minister of Finance Simeon Djankov said for a programme of the Bulgarian National Television. \"We have prepared a conservative budget and I am convinced that this budget will endure the burden of the crisis\", Minister Djankov said. The macroeconomic forecast envisages a GDP growth of 2.9% for next year but revenues are projected for a 1% growth, which is one of the main cushions in the draft budget for next year. \"This is not a timid budget but is the only possible one in the conditions of a crisis, and is the first one in which we can afford to pursue an active social policy for we are financially stable\", the Finance Minister also pointed out. He reminded that more funds for education, culture and healthcare were envisaged for 2012, and in percentage terms there were far greater resources allocated to the social areas compared to previous years.

The Financial Stability Pact criteria have already been triggered and the budget deficit must not exceed 2 per cent of GDP. A deficit of 1.3% of GDP is planned which is yet another cushion against the crisis, the Finance Minister said.

The minimum wage will be raised from BGN 270 to BGN 290 as from the second quarter of next year. The possibility for increasing the lowest pensions is also explored. No other EU Member State plans to increase the expenditure for wages and pensions this or next year, Simeon Djankov pointed out.

A proposal for an increase in the early retirement length of service from 25 to 27 years of the persons employed in the systems of the Ministry of Interior, the Ministry of Defense, the National Intelligence Service and the National Security Agency is discussed, which would result in a smaller pressure for the NSSI budget, said Simeon Djankov. This proposal would not affect the retirement benefits paid to regular members of the armed forces but would rather affect the administration, whose benefits would be made equal to the benefits paid to the rest of public administration employees. As to the staff of the National Security Agency, the proposed benefits would amount to 15 gross monthly wages, added the Finance Minister.

Almost BGN 800 million are projected for co-financing of EU programmes. The 2012 budget envisages an accelerated absorption of EU funds, with EU grants being increased by 80 per cent.

The Deputy Prime Minister defined as \"a very bad and rash act\" the referendum which Greece plans to hold with regard to the rescue measures agreed by the EU Summit and the members of the euro area last week. \"Those who lived at a high rate years on end, will now suffer\", also commented the Finance Minister and added that this makes the Bulgarian Financial Stability Pact even more important as it distinguishes us as a financially responsible and disciplined country.