Minister Velkova: It is impossible to develop a budget update

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It is impossible to develop the budget update, Finance Minister Rositsa Velkova commented during a briefing. According to her, the revenues are extremely tight and there is no expectation of their over-fulfilment, and in order for there to be an update, there must be an over-fulfillment of the revenues.

The minister pointed out that there were many unforeseen expenses, which the cabinet would have to provide from the restructuring of expenses under the central budget and from savings. For the next year, a significant deficit of more than 11 billion BGN is forming, which is 6.8 percent of Gross Domestic Product /GDP/. Velkova warns that if the policies are not changed, a deficit of 40 percent of GDP will be reached.

An increase in GDP is predicted for this year – by 2.9%. The Minister of Finance also commented that inflation is mainly driven by food and energy prices, and its slowdown is expected due to the contraction of consumption and the contraction of consumption not only in our country, but also in the European Union.

There is speculation on the topic of capital spending surpluses, she said, noting:

The issue is being developed, since funds for capital expenditures of over BGN 8 billion have been voted in the budget, but BGN 4 billion of them are European funds, which cannot be restructured even if there is an economy. BGN 1.1 billion are municipal expenses, which also cannot be restructured, and BGN 1.2 billion are expenses for the regional ministry. BGN 1.1 billion is also the capital expenditure in the „Defense and Security“ sector. That is, there is no way to save money there.“

Among the unforeseen costs that the caretaker government must undertake are those for the early vote, Velkova added. According to her, expenses for the integration of the refugees from Ukraine are to be sought.

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