BG PARLIAMENT ADOPTS BUDGET 2014 FRAMEWORK, BUT PRESIDENT IS CONSIDERING VETO

The Bulgarian National Assembly managed to adopt the general framework for Budget 2014 after days of inability to decide on the issue. 106 MPs voted in favour of the budget framework, 66 were against it and 13 abstained. However, President Rosen Plevneliev is considering whether to veto the budget due to its disputed 20% tax on the renewables producers, but said he will wait for the final adoption of the budget 2014.

The approval of the controversial 20% tax on the renewable producers caused a public uproar. The approximately BGN 150 million raised from the new measure will be spent on investments and programs in the energetics. Two days ago President Plevneliev signaled that he may return the bill due to the new tax.

BGN 790 million was voted for economic growth in an attempt to boost the 1.8% GDP growth forecast, which is generally seen as over-ambitious.

1.8% economic growth, 1.8% deficit and 1.8% inflation: these are they key words of the Oresharski government for the 2014 draft budget, Standart daily reports. The gross domestic product is scheduled to increase to BGN 81.582 billion, while there is a 1.18% forecasted growth in expenditure to BGN 32.358 billion. Bulgaria's revenues are expected to grow by 1.65% to BGN 30.886 billion in 2014.

A total of BGN 19.262 billion were scheduled on income, grants and donations spendings.

The forecasted expenses amount to BGN 19.899 billion according to the framework.

Bulgaria is counting with BGN 904.6 million contribution from the EU over the next year.