THE BUDGET DEFICIT WAS CUT OVER TWO TIMES IN A YEAR TO REACH BGN 650 MLN

According to preliminary data, the budget deficit for January and February 2011 is over two times smaller, compared to the same months of 2010, reported Minister of Finance Simeon Djankov, during Friday's parliamentary control session. He answered a question posed by Cornelia Ninova, MP from Coalition for Bulgaria about the budget this year. The minister pointed out that, during the first two months of 2010, the budget deficit stood at BGN 1.450 bn, while in the same period this year it was BGN 650 mln, and the revenue part of the budget was fulfilled at a 100%. Even the Customs Agency reported a 104% achievement of planned revenues.

In the first two months of the year, Customs collected BGN 114 mln more than in the same period of 2010 from VAT and excise duties on cigarettes. "I have no concerns that we will not be able to reach the planned budget figures in 2011,” said Djankov.

In response to the another question of Ninova - how large the amounts due to business are Djankov said that last year, State liabilities to companies decreased by BGN 400 mln and at the beginning of 2011 these were BGN 205,8 mln. The Deputy Prime Minister stated that almost all administrations had paid their liabilities to companies, with the exception of three ministries. The Ministry of Regional Development and Public Works has reduced its debt by BGN 200 mln and now owes merely BGN 47 mln to businesses. The Ministry of Defence, in 2010, paid some BGN 102 mln and now it has to reimburse BGN 87 mln, primarily for large projects implemented by foreign companies. The Ministry of Labour and Social Policy owes some BGN 4.8 mln but has already paid BGN 53 mln.

The Deputy Prime Minister denied the data of the Bulgarian Industrial Association (BIA), cited by Ninova, that the Government’s debt to companies amounts to BGN 2.4 bln. According to the MP, companies have not paid insurance contributions to the amount of BGN 900 mln and owe over BGN 2 bn in remunerations.