- Political stability
- Fiscal affairs
- Monetary policy
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- Macroeconomic developments
The state of public finance by mid-2005.
submited on 08.07.2005 in category Political stability | Fiscal affairs | Macroeconomic developments
submited on 08.07.2005 in category Political stability | Fiscal affairs | Macroeconomic developments
The new government will take office in a time of unprecedented size of fiscal reserve, low level of public debt, and high growth of public revenues.
By May, public revenues reached BGN 7.35 billion, or 15.3% higher than in the first five months of 2004. Tax revenues grew by 13.8%, with VAT and fuel excises growing by about 20%.
Public expenditures by May reached BGN 6.35 billion, or 12.2% higher than 2004. This level of growth was expected due to the regularity of most public payments (i.e. wages and pensions). Public investments however grew by 67%, which reflects the intensity of pre-election spending on new infrastructure and purchase of equipment.
The fiscal surplus reached BGN 995 million, or 40% higher than the level of January-May 2004. Based on our observations of the real sector dynamics, we expect consolidated public revenues to reach BGN 18 billion, or 43.5% of GDP. They will exceed earmarked expenditures by about BGN 1.7 billion, which will be the ceiling of discretionary spending by the end of the year.
By the end of Q1 2005 the total public debt stands at EUR 6.8 billion, or about 32.5% of GDP. After the Brady bonds buy-back scheduled for end-July, the level of the debt will fall to EUR 6.3 billion, or about 30% of GDP.
The fiscal reserve reached BGN 5.2 billion by end-May, i.e. it recovered to the levels of last year before the previous Brady bonds buy-back in January this year. After the new buy-back in July, the reserve will fall to about BGN 4.3 billion (or 10.5% of GDP).
By May, public revenues reached BGN 7.35 billion, or 15.3% higher than in the first five months of 2004. Tax revenues grew by 13.8%, with VAT and fuel excises growing by about 20%.
Public expenditures by May reached BGN 6.35 billion, or 12.2% higher than 2004. This level of growth was expected due to the regularity of most public payments (i.e. wages and pensions). Public investments however grew by 67%, which reflects the intensity of pre-election spending on new infrastructure and purchase of equipment.
The fiscal surplus reached BGN 995 million, or 40% higher than the level of January-May 2004. Based on our observations of the real sector dynamics, we expect consolidated public revenues to reach BGN 18 billion, or 43.5% of GDP. They will exceed earmarked expenditures by about BGN 1.7 billion, which will be the ceiling of discretionary spending by the end of the year.
By the end of Q1 2005 the total public debt stands at EUR 6.8 billion, or about 32.5% of GDP. After the Brady bonds buy-back scheduled for end-July, the level of the debt will fall to EUR 6.3 billion, or about 30% of GDP.
The fiscal reserve reached BGN 5.2 billion by end-May, i.e. it recovered to the levels of last year before the previous Brady bonds buy-back in January this year. After the new buy-back in July, the reserve will fall to about BGN 4.3 billion (or 10.5% of GDP).
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