BULGARIA'S BUDGET EXPENDITURE FOR 2014 SHOULD BE SIGNIFICANTLY REDUCED
Bozhidar Danev, executive chairman of Bulgarian Industrial Association, told Sega daily that budget expenditure for 2014 should be significantly reduced. Party subsidies for 2014 may be reduced, for example. Budget deficit should not exceed 3% of GDP, Danev added. A bigger increase in budget deficit will drive Bulgaria further away from ERM II as well as from accession to the euro area.
According to Danev, with the insufficient public information about Corporate Commercial Bank and Victoria TB and their recovery, taking out a new government debt is justifiable only for covering newly accumulated budget deficits (up to 3% of GDP) and if the fiscal reserve cannot cover the deficit.
No negotiations about restructuring of debts of the fiscal reserve should be held. Granted resources should be reimbursed to the country in the given deadlines. First Investment Bank (Fibank) has already received BGN 1.2 billion and should pay off the sum in November.
