09.02.2014

"I expect an immediate effect on growth already this year and jobs to be generated across the country", Minister of Finance Petar Chobanov commented in the BNR programme "Nedelya (Sunday) 150" the effects that the Public Investment Programme "Growth and Sustainable Development of the Regions" would have on the economy. According to Chobanov the growth basis will no longer be formed by several towns but by a lot more. The problems that have accumulated for decades such as lack of water supply, river basins' management and waste management, the possibility for sports to develop again will begin to be solved. I expect the effects to be multifold, to be complex and to play the role and achieve the objectives of the Programme, Chobanov added.

The criteria are clearly described in the Decree which sets the manner of allocating the funds under the Public Investment Programme. The projects must be focused on closing the gaps between the regions, on ensuring better living environment in the respective smaller and larger establishments and on generating jobs. "Of course project preparedness and the assessment whether the project could be completed within the financial and time limits foreseen have had their influence" the Minister of Finance commented.

"The money is public resource; it is national and therefore allocated across the country. For the first time we have an investment programme for which the criteria have been announced in advance, which is not distributed by one man, but by an Interdepartmental Council in which the Chairperson of the National Association of Municipalities also takes part", Chobanov reminded. "Project proposals totalling more than BGN 2 billion have been submitted under the Programme. You have to agree that given the limited resource of BGN 500 million there would be people not satisfied", he said further and added that BGN 125 million were allocated to municipalities whose mayors were from GERB. This makes 36% and the purely party-wise statistics should not give rise to criticisms, the Finance Minister said. Chobanov again expressed his willingness to meet with the mayors from GERB and to discuss the issues raised by them within the legal therefor format which was the National Association of Municipalities. If both parties are ready, such a meeting could take place within around ten days, he specified.  

"The revenue agencies have not reached their potential and for this reason I have offered to the Executive Director of the National Revenue Agency to optimise 20% of those working in the NRA central administration", the Finance Minister commented. This optimisation does not mean that the people will be laid off, but that the control functions of the tax administration will be strengthened and the people will be redirected towards direct control and inspection activities, Chobanov explained.

The main change in the new Organisational Rules of the Customs Agency, that is to be published, is the centralisation of the mobile groups, the Minister of Finance announced. For the purpose of better results - more budget revenues and effective fight against contraband - the mobile groups will not be situated in the customs offices, but will be at the disposal of the central administration, with more flexible schedules and in coordination with the Ministry of Interior. The Minister of Finance reminded that in the second half of 2013 compared with the second half of 2012 the results of the Agency were better and more revenues were collected. The detection is also improved, he added. The Finance Minister again commented that this year no budget revision was foreseen. Bulgaria will continue to be the country with the second lowest debt in the EU, he further said.

"Tomorrow there will be a meeting with business representatives to discuss the options whether the single account to be divided into sub-accounts or several different accounts to be set up for the payment of different obligations", Minister Chobanov announced. Measures are being taken and this issue will be solved in a dialogue with the businesses. "We will again give a hand to the businesses in light of the improved communication after the middle of last year and tomorrow the options for finding a solution of the situation will be discussed" the Finance Minister stated.