11.11.2013

This year\'s budget revenue may be performed and a new revision will not be necessary. Budgetary risks are manageable. This is what Finance Minister Petar Chobanov said for Darik Radio. In the event of a possible failure to perform the budgeted revenue, there is a scenario according to which there will be careful further optimization of expenditure, with \"parasitical expenditure items being cut\", said Mr. Chobanov. More revenue than expected was collected in October and we have November and December ahead - these are two quite active months and the basic scenario we are following is that the budgeted revenue will be collected, he said explicitly.

The key growth factors are capital, labour and technologies and the 2014 draft budget provides the resources and the policies needed to address them, Mr. Chobanov explained. Concerning capital, on the one hand we continue relying on EU financing and on the other hand we have created the Growth and Sustainable Development of the Regions Public Investment Programme. There are additional resources allocated for education which directly relate to investment in improving the education and qualification of human capital\", he added. As to the third factor, the Minister said that a bigger innovation fund would be set up which would have more resources and would be oriented towards applied sciences. \"We strive after a higher growth potential and making the economy closer to that potential. What we have observed this year is that because of the budget and because of the policy we are very far from what the economy could achieve. The budget strategy to be pursued in the following years is to cover that distance\", Mr. Chobanov said.  

The Minister of Finance confirmed that the resources of the Public Investment Programme would be directed to economic growth, employment and improvement of the living environment in the regions. Participation of the local authorities in this mechanism is actively promoted. According to him, the regional disparities in recent years are quite evident and overcoming them is one of the Programme\'s objectives. \"The 5% buffer refers to a very small percentage of municipal revenue and a number of activities have been excluded from the uniform standards. We have good dialogue with them and we have attained excellent results concerning the resources disbursed therefor. We will continue developing this dialogue towards financial decentralization next year as well\", the Minister said.

The decision for new debt from an external source is based on the assumption that the economy speeds up and the resources at disposal in the banks must be used for lending in order to urge the business and accelerate the economic growth, the Finance Minister explained. What is important about this type of debt is that it may be pledged to the European Investment Bank and this makes it sufficiently flexible and attractive. According the minister, the fact that it is of interest to a certain type of conservative investors means that they assess the country\'s fiscal stability as sufficiently adequate. Minister Chobanov is of the opinion that a Greek scenario and \"belt loosening\" for Bulgaria is impossible due to the fiscal strategy for the next three years that envisages a gradual reduction in the budget deficit. \"And this objective complies with the economic development and with the idea of a more balanced growth model. There is no overindebtedness, the government debt levels remain among the best in the EU\", the Minister emphasized.

\"A Finance Minister should be responsible for the overall picture and beyond that to try to strike the normal balance with the other ministers, thus filling out the picture. The responsibility for the individual policies lies with the relevant line ministers\", Mr. Petar Chobanov is certain. One of the options of the Minister of Social Policy for Christmas bonuses for the pensions below the poverty line is good and Minister Chobanov considers it possible to find resources for it. Freezing the retirement age, according to him, is a \"gulp of fresh air\" and a possibility to resume dialogue. \"A long-term decision is to be made as soon as possible. I will insist on reaching an agreement by the middle of next year on the key parameters of the model for increasing the length of service and the age for retirement and on being aware of the fiscal dimensions. This is a matter of dialogue among all stakeholders but the retirement age must increase\", Minister Chobanov is convinced.

According to Minister Chobanov, the NHIF budget was planned and spent for nine months but the efforts were now focused on guaranteeing the normal functioning of the sector by the end of the year. The revenue side of the NHIF budget performs well and will register an over-performance, he is certain. \"Active dialogue with the Bulgarian Medical Association is aimed at finding resources to disburse 100% of the funds due to hospitals for September and 20% of the expenses incurred in each of the remaining three months by the end of the year to be paid out in January\", the Minister said. He is explicit that the system itself must find and adopt a package of measures aimed at improving the situation and at better cost efficiency.