27.11.2014

"The budget is a financial plan which does not make reforms in itself; it distributes resources". Minister of Finance Vladislav Goranov said the above in the "Svobodna Zona" broadcast on TV+. He added that the proposed draft budget contained a number of reforms - fitting the state finances into reasonable limits of deficit, ensuring the required resources for restarting the suspended EU Funds and settling the state's accounts with the companies that are project contractors, shrinking the government staff by means of limiting the personnel costs and improving the possibilities for investments. "If we look at the general framework, although not being dramatic reforms, these measures are steps in the right direction, towards normalization of public finances as well as of the financing of the individual sectors", he was firm. Minister Goranov pointed out that the 2015 budget envisaged an increase in the revenue side within reasonable and conservative limits. „The tax revenue growth is conformed to the forecast that next year the economy is expected to increase by 0,8 - 1% in real terms which, together with some measures to improve collection - especially in regard to excise duties, will lead to around BGN 300-400 million more tax revenues in 2015 compared to 2014", he explained.

The Minister of Finance also commented the idea of merging the NRA and the Customs Agency. "It is not a matter of urgency; we continue to analyse the positive and negative aspects and the potential risks". He also said that at the moment the development of that concept was set aside in order to be able to concentrate on the pressing tasks until the end of the year. "At the beginning of 2015, when we will have more time to think strategically, we are going to continue the analysis", he is convinced. According to him it is for sure, however, that at the moment the lack of coordination and communication between the two agencies provides a possibility of draining the budget. The Minister also presented the measures taken to cope with the situation. "We are working on the improvement of the information systems of the two agencies as well as on the improvement of the coordination as regards tracing of economic processes related to imports or intra-Community supplies in order to minimize the possibility of abuses. We are making efforts to strengthen the capacity of the revenue administrations and especially that of the Customs Agency related to the control over excise goods' movement".

            The Finance Minister also clarified the composition and distribution of the government debt of BGN 8,1 billion planned for the coming year.  "The bridge loan of BGN 3 billion which is to be taken by mid-December will be repaid in the first months of the coming year", he said. In addition, the Minister reminded that in January 2015 was the maturity date of a previous debt amounting to BGN 1,6 billion. In the structure of the planned debt for 2015 Vladislav Goranov also included the financing of the budget deficit of around BGN 2,5 billion as well as a minimum cushion of almost BGN 400 million. In his words, that amount also included the finance contract signed today with the European Investment Bank to the amount of EUR 500 million which will serve to support Bulgaria in the co-financing of the EU programmes and will be added or utilized in parts depending on the implementation of large investment projects which will be carried out within the operational programmes during the on-going programming period.