07.04.2014

A little less than a year after the beginning of the Government's term of office we observe certain improvement of the business environment resulting from the different attitude of the revenue administration to the companies, Minister of Finance Petar Chobanov stated at a press conference where the products of the Bulgarian Development Bank (BDB) were presented before the companies from the region. Chobanov added that during the meeting the business representatives shared that there was much better communication with the revenue administration itself and that it responded to their problems. The Minister of Finance specified that at the moment work was on-going to reduce the 138 administrative regimes and that since mid-2013 regular refund of VAT had started which resulted in more operating capital and possibilities for business development. He again recalled that VAT to the amount of BGN 542 million was refunded in December 2013, which was by around BGN 300 million more compared with December 2012.

The Minister of Finance further announced that the Public Investment Programme "Growth and sustainable Development of the Regions" would continue next year and for 2015 BGN 300 million were again allocated for municipal projects. Chobanov believes that through the project implementation 20,000 new jobs will be opened across the country. By the funds granted to municipalities regional differences will also be lessened and the quality of the people's life will be improved. In the past 4 years funds for capital expenditure of local governments total BGN 300 million while the 2014 budget only provides for the same amount, Chobanov recalled. Municipalities are also in the focus of the Government - for example, only in 2015 they are going to receive by around BGN 100 million more in the form of equalisation subsidy, capital subsidy, as well as funds for municipal roads and snow cleaning subsidy.

 Investments, better education and better social policy that will lead to economic growth are among the Government priorities. The Minister of Finance commented also the growth forecast underlying the medium term budget forecast for the period 2015-2017. He stated that an increase in domestic investments was observed which was supported by lowering the administrative burden and creating a level playing field for the businesses. Minister Chobanov added that if the businesses were creating greater security for the people and jobs consumption was also expected to rise, for which the social policy focused on the most vulnerable groups, would also have an important role to play. A forecast for 2.1% GDP growth, that some declare unrealistic, depends both on the Government and the businesses. "This is a huge number, as we have got used in the last years to 1% GDP growth", Chobanov further commented.

 As regards making the age for retirement of men and women equal, Chobanov specified that the time limit for implemented the measure remained after 2021. He recalled that that was recommended by the European Commission to all EU Member States and not only Bulgaria. The decision when this is to happen will be made after broad public discussions where the businesses, the trade unions and the citizens will be involved. The Minister commented that "European requirements are important for us, but the Bulgarian citizens are also important". By the adoption of the next year budget it will be clear how the pension reform is to look like. "Our aim is to avoid stress situations like the ones when the previous pension reform has been adopted, when very fast decisions have been made to increase retirement age", Chobanov further specified.

 Chobanov further commented that the interest in the new BDB products was very high which was evident from the presence of the businesses at their presentation. The Minister commented that the Bank was addressing weaknesses and market niches for one reason or another not covered by other financial institutions.