The budget deficit will reach 5.7% of gross domestic product by the end of the year, Finance Minister Galab Donev told BNT. According to him, the indicator is currently 2.8% of GDP, and the largest budget payments are concentrated in the last months of the year.
“The budget deficit is not the brainchild of the current government“, said Donev. He linked its accumulation to the policies of the previous government. The minister stressed that the government does not intend to transfer payments to subsequent years in order to limit the pressure on future budgets.
The debt of 2.25 billion euros is for payments under the PVP
At the end of September, Bulgaria took on new debt of 2.25 billion euros. Donev explained that the funds are intended for payments under the Recovery and Resilience Plan, as well as to guarantee the financial stability of the system.
“Debt is taken out when there is a shortage of funds“, the finance minister pointed out. He assured that policies related to people's incomes will not be changed.
Inflation and prices
According to Donev, the rise in prices is influenced by various factors, including the international situation and the impact of the war in the Middle East on oil and gas supplies. This, he said, affects the prices of goods and services.
The minister said that the euro was not the reason for the price increase. He accused the previous government of not having dealt with speculation after receiving a positive assessment of Bulgaria's accession to the eurozone. Donev added that the increase in salaries and pensions also affects inflationary processes.
According to him, the government is not faced with a choice between progressive taxation and a tax on excess profits.
Restrictions on rakia and gambling advertising
On the topic of homemade rakia, Donev specified that the goal is not to ban its use. The restriction concerns the sale of homemade alcohol in commercial establishments.
The Finance Minister also stated that a complete ban on gambling advertising is imminent. According to him, there will be no billboards and neon signs at casinos, and advertising will be allowed only on the kits of sports teams. He stated that the goal of the measure was to protect citizens from dependence.
Donev described the return of Tsar Samuil's remains as a historic moment and an event that unites the nation.
Sources: News.bg