/ world today news/ Let’s answer the question of whether we have real fiscal stability. This was said by the Minister of Finance Petar Chobanov from the parliamentary rostrum during the discussion of the budget update. The update is done to convert
Let’s not get into lobbying laws again. Reserves for better liquidity management. Dyankov’s fiscal policy in 2009: we had a deficit fixed at a low number, but then concrete commitments that had to be paid were not taken into account. Then there was also an update of the budget, and this is now one of the main advices to us – not to do the update so early, Chobanov said. Our idea to do it is to step on a firmer foundation to make the 2013 budget. Under Dyankov, the 2010 budget was updated in a much larger amount than we are doing now. Health contributions were increased, and the reserve was transferred to the general budget pool and spent on current expenses.
This is why the healthcare reform was not carried out. The process of fiscal decentralization has frozen. In 2009, the debt was BGN 9,340,000,000, at the end of GERB’s administration it was BGN 13 billion. In recent years, the debt increased by BGN 3.7 billion, and the fiscal reserve decreased by BGN 4.4 billion. Serious part of the criticisms are that we will be very wasteful because of this one billion euro debt. They called us thieves, there were all sorts of criticisms, the finance minister said. According to him, 9 billion and 340 million was the debt in 2009. There is no danger of repeating the Greek, Spanish or other scenarios, reassured Chobanov.
How much was the newly issued debt during the management of GERB, the finance minister asked, and he himself answered that it was 1.3 billion BGN in 2009, 1.7 billion in 2010, and 3.350 billion was the peak in 2012. The total indebtedness of the state does not change after we take the money, reassured the minister. We don’t take a billion to steal them. Even if we wanted to, we can’t steal them, Chobanov said and explained what exactly the money will be spent on. The level of the fiscal reserve is very important for us, it is even more important than the debt. This one billion BGN will go into the fiscal reserve, Chobanov explained. As the analyzes show, the impact of the previous financial policy on the economy was procyclical. The private sector has been driven to the impossibility of making investments. Non-return of VAT leads to an additional burden on the budget. The ministerial departments identify needs for over 600 million BGN. Ministries and departments will need to carefully assess their spending. There is a need for additional funding in many sectors, many commitments have been made.
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