21.01.2022

The budget for 2022 is a budget for economic growth. This was stated by Deputy Prime Minister for EU Funds and Minister of Finance Asen Vassilev during the presentation to the media today of the draft budget for 2022, which was published for public discussion on the website of the Ministry of Finance. He pointed out that this budget envisages GDP growth of 4.8%, which is 1.2% more than last year's GDP growth. Unemployment is set to decrease from 5.4% to 5%, the budget deficit for 2022 without COVID measures is 2.5%, and with them is 4.1%.

Deputy Prime Minister Vassilev pointed out that the budget for 2022 has three main highlights - one is the significant increase in capital investment by the government. These investments are not only from European programs, but also from the national budget. The second priority is the significant increase in investment in people, because, according to the Minister of Finance, this is the key to economic growth in the long run. The third goal is social justice and security, so that all Bulgarian citizens will have an adequate standard of living.

With regard to capital investments, the budget envisages doubling them from 2.9% of GDP at present to 5.8% of GDP. 30% growth of the capital investments in the municipalities is set on the basis of transfers from the central budget. An additional BGN 1.671 billion are the investments in the national road network, which brings the RIA budget to 2.4 percent of GDP.

"With this budget I hope to start a policy in which the state does not distribute money to every person equally, does not distribute money in sacks, but invests in projects with specific returns - in the people of Bulgaria and in our much-needed infrastructure" - categorical was the Deputy Prime Minister Asen Vassilev. He explained that the philosophy of this budget is quite different from what we have seen so far. This is not a budget that tries to smooth the economic business cycle on the principle that when the economy overheats, there is less investment, and when the economy is in decline, this is offset by government investment. This is a budget that is trying, and I hope to achieve, a lasting change in the parameters and the trajectory of the country's economic prosperity.

"The draft budget for 2022 sets out policies that can be valued at the moment and that are key for the relevant ministries. As provided in the coalition agreement, there will be an update of the budget in the summer, in which all management policies and their financing will be presented," said Asen Vassilev.

Budget conciliation procedures begin today. It has already been sent to the social partners. It is expected that after its approval by the social partners it will be adopted by the government and on January 31, the draft budget will be submitted to the National Assembly.

Date: 21.01.2022

Source: Ministry of Finance

Readed: 3641