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Bulgarian Parliament Discusses Budget 2011

Thursday, Dec 02, 2010

Bulgaria aims to have a budget deficit of 2.5% of gross domestic product and a growth of 3.6% in 2011, according to the State Budget Act, which will be discussed on a second reading Thursday.

The 2011 state budget provides for state revenues of BGN 25,84 B and state spending of BGN 27,8 B, i.e. a deficit of a little under BGN 2 B, which is expected to be about 2,5% of the GDP.

The projected GDP in 2011 is BGN 77 B, or EUR 39.3 B, which means a GDP growth of 3.6%, a figure the opposition and other critics slammed as unrealistic.

After growing by more than 6% in 2004-2008, the Bulgarian economy shrank by 4.9% in 2009, and is expected register a growth around 0% in 2010.

The main factor for the GDP growth in 2011 is expected to be an increase in exports, followed by an increase of domestic demand.

Earlier this week, the European commission estimated the expected increase in Bulgarian GDP at 2.6%, thus being less optimistic than the country's government.

The Bulgarian Ministry of Culture will receive an additional BGN 10 M in order to preserve the national cultural heritage. Another BGN 10 M more is planned for the Judicial Ministry.

Analysts say Bulgaria's budget 2011 resembles its predecessor in its overly optimistic forecasts and risks. According to them the government's economic-growth estimate for 2011 will be difficult to achieve as credit growth remains moribund and consumer demand weak.

Source: novinite.com