Officers with appropriations to optimize costs

Revenue of the budget goes to the failure of nearly 6 billion leva, which means that the latest state projections go to the deficit of 2.5 billion leva.

It said to journalists at the Council of Ministers vitsiepremierat and Finance Minister Simeon Dyankov cited by BTA. The Government adopted a decree to limit non-interest expenses of EUR 1.156 billion. After the reduction of costs in that amount is still quite work to achieve a balanced budget, said Dyankov. The remainder of the deficit will be melted by increasing revenue.
Reductions are primarily in capital investments, not reduce the salaries and pensions, added Dyankov. Will improve the collection of taxes and excise duties, the Minister said. Bulgaria is second in collection of VAT in the EU and therefore the direction of the National Revenue Agency will remain, he said. In offices can do a lot of collection of excise and most fuel and alcohol may increase much – more than 1.2 billion euro, said Dyankov.
Payment of excise duty on fuels decreased 2-2.5 times and part of this decline is due not to economic logic for lower prices, and smuggling, says minister. Minister Dyankov tomorrow will be to Plovdiv meeting with officials of the National Revenue Agency and Customs. Ways to increase revenue are clear, the question is how quickly they can be implemented, said the Minister. The election so far, political and financial risk of the country has decreased by 1.5% if Bulgaria decides to issue bonds, they may now be of interest about 5.5-6 percent, says he. This means that the outside world thinks that the new government of Bulgaria is less risky as an investment Dyankov comment.
Risk reduction is due to conservative fiscal policy that will follow, he added. Currently there is no issue of internal debt, but it is possible to issue external debt is not on the agenda, he added. In his three-four months resources which allow foreign banks branches in Bulgaria, will be cheaper and the interest of banks in the country will fall. Slowing economic activity and the changes in the economic situation in our country have led to changes in estimates of macroeconomic parameters in 2009, stated in the notice of Ministers concerning today’s decision to reduce budget costs. Revised estimates of the Agency for Economic Analysis and Forecasting shows contraction of GDP for the year by around 6.3 per cent in makroramkata set in the budget for 2009 growth of 4.7 percent. Makroramkata revised parameters lead to new estimates for the deteriorating performance of expected revenues, which requires taking urgent action to limit the costs added by the Government Information Service. The proposed measures include reducing the costs of the budgets of state bodies, ministries and departments with 366.6 million euro, limiting transfers on the state budget and other budgets for extra funds to 42.3 million euro, other target costs, capital costs and subsidies within the central budget including the utilization of state investment loans – a 664 million euro. It is recommended that primary and secondary level in separate appropriations budgets – the Supreme Judicial Council, the National Insurance Institute, the National Health Insurance Fund and state universities, to take necessary actions for improving and reducing costs in the budget for 2009
Municipalities are advised to take action to optimize and reduce the costs as to reduce the amount of their income and transfers received from other budgets, extra accounts and funds, and to prevent the accumulation of overdue obligations.

––––––––––––––––– ––––––––––
Finance