Acting Deputy Prime Minister for European Funds Maria Nedina stated that the reported deficit of 1.2% is mainly due to increased spending on current investments and lower revenues at the moment.
On the air of “Wake Up“ she explained that the country is in a period of increased payments, including under the Recovery and Sustainability Plan and municipal programs.
According to her, around 2,500 investments are currently being implemented, and additional pressure on the budget is also being exerted by expenses such as pension indexation. "Nevertheless, Bulgaria expects to receive over 2.5 billion euros under the PVP, with the key condition for this being the adoption of the necessary reforms by the National Assembly by the end of August", said the Deputy Prime Minister for European Funds.
Nedina stressed that if these funds are not absorbed, this will have a negative effect on the budget. According to her, the reforms are even more important than the investments themselves, as they unlock the financing. She called for the rapid adoption of the laws related to the establishment of an anti-corruption commission, changes for the Prosecutor General and reforms in the water and sanitation sector.
The Deputy Prime Minister specified that active talks are underway with the European Commission, with Bulgaria requesting a postponement due to difficulties in the legislative process. According to her, there are positive signals from Brussels.
Regarding the funds from the Bulgarian Development Bank, Nedina explained that there is no risk to the rehabilitation programs and municipal projects. "The sum of 1.4 billion euros remains available and can be used by the next government", she pointed out.
Nedina also commented on the topic of security, expressing support for Georgi Kandev after threats were made. "He is an honest employee and it would be good for him to continue his work in the Ministry of Interior system, especially in view of the increased activity of citizens in reporting violations during elections", she emphasized.
The implementation of the projects under the Public Works Development Plan in transport also remains a serious challenge. Nedina reported that the company Alstom has notified the Bulgarian side that the delivery of 12 trains by August is in question. This creates a risk for the implementation of the investments on time, which must be completed by August 31. The topic has already been raised at a high level, including by the Prime Minister during international meetings. “It is worrying that we are receiving such information so late“, concluded Nedina.