Public finances in the red light

Decline in the collection of basic incomes budget and lack of control on government expenditure spend. Briefly, this is the state of fiska now. Data published yesterday by the Ministry of Finance (MoF) for the budget at the end of May confirmed this picture.

Although at the end of May budget balance is positive – 105.8 million euro only in the month the budget is red with a 281.9 million euro (for the period January-April balance was 387.7 million euro). Even more tragic is the situation in comparison with the first five months of 2008 when the budget is made 2.37 billion surplus of EUR

The total amount of revenues in the state budget by the end of May was 7.31 billion euro, representing 34.9 percent of the projected estimates for 2009 compared to May 2008 observed decrease of 8.8% or in absolute amount collected 707.5 million EUR less.

Similarly, the implementation of the consolidated budget. Except the last Republican, includes all autonomous budget – municipal, insurance funds, two, BAS, BNR, BNT, the Supreme Judicial Council, and the extra accounts and funds and other accounts at the central and local level.

May only realized in the consolidated budget deficit reached 120.1 million euro towards the end of May 2009 the total surplus is the amount of 555.4 million leva, while the end of April 2009 the surplus reached 675.5 million euro

The likelihood of this year out of state to a red rose. According to the expectations of economists, if the government changes the cost of policy risk in the budget deficit in 2009 to exceed 2 billion euros.

The budget at the end of May suggests that external assistance is unlikely to be avoided.

Public finances will be in red in this and next year expects to June 23 the European Commission.

In Brussels last report indicated that if the government does not change the course of makropolitikata Bulgaria will account deficit of 0.5 percent of GDP in 2009 and 0.3 percent for 2010

The first task, which will have to take a new cabinet is the reduction of costs and the introduction of strict controls on government outlay. Budgetary discipline and transparency underpin the protection program with the IMF.

For the signing of such an emergency and possibly grant a flexible credit line if necessary, call upon opposition. Managing understandable set remain skeptical.

The truth is that maintaining a prudent macroeconomic policy, which we promised in their election platforms parties would save us the need for external financial support. The problem is that management by shark up to power very quickly lose their prudence. By this logic, a certain agreement with the IMF can not be avoided.

Finance