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More specifics and detailed policies to be found in the Government Program 2005-2009, compared to previous cabinet’s agenda.
We can outline three areas of policy that deserve special attention: a promise of balanced budget and contained public expenditure, deregulation of network industries and concessions over infrastructure and (partial) reforms in financing of education and healthcare. The government sets a target of fiscal burden of 40% of GDP. Ta...
Current account deficit reached 8.7 per cent of GDP in September.
Current account deficit reached 8.7 per cent of GDP in September. According to the latest data released by BNB the current account deficit for Q3 reached 1, 837 million euro or 8.7% of GDP. For the same period of 2004 the deficit amounted to 697.6 million euro or 3.6% of GDP. By year-end it will probably extend to 10-11 % of GDP...
Budget surplus reaches new record highs of BGN 1,535 million in September.
Recent data show that budget revenues continue to grow at rates far exceeding the expected pace. For the nine months till September consolidated budget revenues reach BGN 13,241 million, or 13.9% higher than the same period of 2004. Expenditures until September stood at BGN 11,706 million (13.4% growth over 2004). The resulting ...
Current Account deficit will widen further in 2006.
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The government and the IMF will probably fail to reach an agreement on the fiscal policy for 2006.
The IMF mission maintains its position that high level of public expenditures and the fast expansion of private sector external indebtedness nourish the current account deficit. The latter is expected to exceed 13% of GDP by the end of 2005. Meanwhile a new set of Central Bank restrictions on banking credit will be set in place ...
Domestic inflation in Bulgaria slowly converges with the rate in the Euro-zone but 2006 is expected to bring about upward pressure on prices.
Since January 2005 we observe a deceleration of Bulgaria’s annual average CPI – from 5.9% to 4.6% in September. Given the slight growth of the Euro-zone inflation rate after June (from 2.0 to 2.5%), the trend towards price change convergence seems stable.At the same time, short-term factors in Bulgarian economy will exert a seri...
Tax wedge on labor costs to be reduced by some 2 percentage points.
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Proposed changes in real estate tax valuation.
The Ministry of Finance (MoF) proposed an average 20%-increase of tax valuation of real estate property for 2006. The ‘tax value’ is used to calculate annual property tax, garbage collection municipal fees and property transaction tax. The change will probably be accepted by the government and consequently the parliament. There ...

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