22.04.2014

\"I want the economy to work even better. This will happen by continuing to improve the business environment and to reduce the administrative burden. We have to inspire people with more confidence\", Minister of Finance Petar Chobanov stated in an interview for Pressa daily. \"In our first financial year, although we started it from the middle, we have managed to achieve many things\", is the recapitulation of the Finance Minister. Due to the measures taken for several months more revenues were collected and 2013 was closed with a deficit below 2%. March budget implementation data are still being specified, but according to Chobanov the deficit will be close to its last year level because the previous irregular VAT refund is still affecting it.

\"The issue we are preparing will be on the international markets in order not to put pressure on the domestic market and in order with the banks\' money to extend loans to Bulgarian companies\", Chobanov specified and added: \"And to the question who is going to pay, the answer is - the economic development\". According to him the growth of the economy will help as of 2017 the government debt to be close to 20% of GDP and to lower compared to the preceding years. \"This year we will repay BGN 3 billion old debt and thus there will not be substantial accumulation of new debt and the fiscal reserve will not drop\", he was adamant.

To a question regarding the danger of the State to be \"eaten up\" because of the elections, Petar Chobanov invited all those interested to monitor the additional expense next month. He is convinced that there was no such danger - \"The budget and expenditure cannot be called pre-election ones. In several consecutive years we are in election environment and if the policy should have been pre-election one then the deficit would have been always at 2% level\". The Minister further refuted the concerns with the argument that the budget forecast for next years provided for gradual reduction of the budget deficit.

In respect of the tax system the Finance Minister is of the opinion that the flat rate tax is necessary for economies such as Bulgaria\'s because it corresponds to our catching-up economic system and has to be maintained. According to Minister Chobanov for the system it is important to continue with the measures to improve collection and depending on the revenues it will become clear what expenditure we can afford. \"In time, when the standard of life becomes higher we can think of introducing progressive taxation\", is the opinion of the Minister of Finance.

\"The Public Investment Programme \"Growth and Sustainable Development of the Regions\" is the biggest programme of the Government ensuring employment - the expectations only for municipal projects are for more than 20,000 new jobs. Next year we plan another BGN 300 million for municipalities\", the Minister stressed. He specified that there were already 21 launched projects in 19 municipalities, 30% advance payments disbursed and a completed project even. \"Bulgaria stands on the map of Europe as a stable country with good public finances. We create conditions for growth\", said the Minister of Finance in conclusion.

You can read the whole interview here.