/ world today news/ Cutting ribbons has become a priority of GERB. The majority in Sofia Municipality (SO) will not miss the opportunity to use the 2015 budget. for benefit, with a view to the upcoming local elections. This was stated by the chairman of the BSP group in the Capital Municipal Council, Milka Hristova.
“The budget, however, is formed from the taxes of all the citizens, and let no one think that he brought his father’s estate and gave it to the people of Sofia. We all have merits for what is happening and special merits should be attributed that if it’s not this government, it’s another one, there won’t be similar results, it’s ridiculous and frivolous,” Hristova believes. According to her, for a municipality that wants to develop, money is never enough, but against the background of the state of the other municipalities in the country, Sofia’s budget of 1.49 billion. BGN gives very serious opportunities for the development of the city. BSP did not support the budget of the capital and voted against it. “We did not support the budget not simply because we are in opposition, but because we have conceptual differences with GERB regarding the development of Sofia and in particular regarding the formation of the revenue and expenditure part of the budget”, Hristova explained the reasons for this decision.
She calculated that the 2015 budget more or less repeats last year’s figures as revenue. “We are concerned about some facts that we reached after analyzing the implementation of the 2014 budget. The 2014 budget was largely repeated in the 2015 budget. The budget in the revenue part was implemented at 95%, which is a serious achievement. Behind however, there are disturbing facts. In the part of collecting tax revenues, the people of Sofia are fine, however, in the part where Sofia has to form its own revenue from management of their property and commercial companies, things are not like this. There, the performance of income by property is 80%, and the income for dividends, which are received as profit for the municipality from own and commercial companies and enterprises, is in the amount of 35%, that is BGN 2.5 million”, the chairperson of the BSP in the municipality presented the facts and concluded – Sofia is still not a good enough manager of the huge property it owns… According to Hristova, the implementation of the capital program is of particular concern of SO. “What Sofia is proud of is the huge investment program for last year in the amount of about BGN 749 million. The question is how this capital program was absorbed. As of December 2014, 69% of it was absorbed. Last year there were unrealized several large infrastructural hubs, 22 street arteries that have not been completed,” she pointed out.
Hristova believes that the most worrying thing about the implementation of the 2014 budget. is that the lowest percentage of completion is those objects that are connected to the other Sofia – that of the outer districts. “The degree of assimilation of the intra-neighborhood street network, education, health care is very low,” says Hristova. Capital spending on education in 2014 are 1.6%, and for health care are 0.6%. “Compared to the huge budget of Sofia, this is extremely insufficient and this is one of the main defects of the budget. In the 2015 budget, the situation is identical. Again, we have a revenue part, which in terms of dividends and projected revenues from municipal property are more low. There is a very large capital program and again it is set for several large infrastructural objects, such as the metro, several intersections, central arteries. The funds intended for the periphery of Sofia are limited insufficient in this budget as well. Only BGN 23 million have been allocated for the intra-district street network, out of a total of over BGN 123 million planned for the street network in Sofia,” she said indignantly.
Regarding the fact that Yordanka Fandakova stated that even if the figures for health care and education were increased, they could not be seen in the budget, since many municipal hospitals and DCCs invest their own funds, Hristova said that this would be good. if it were true. “It was only this year that some of the large municipal hospitals applied for the “Jessica” fund, and those with good financial results were able to obtain loans to invest in specialized medical equipment,” she explained and clarified – these are episodic cases. Most of the hospitals and DCCs are heavily in debt. “The formula that they are commercial companies and must develop only with their own funds is not acceptable, since the only funds that a medical facility can absorb are under the National Health Insurance Fund,” added Hristova. Separately, she commented that, given that education is a priority, she cannot accept that this year in the capital program for the construction of new kindergartens, the costs have been reduced by 11 million. BGN “The fact that sufficient funds are not allocated again shows that this priority is not a priority. There are no priorities, the issues are solved piecemeal, according to who is more painful. This reveals the absence of a comprehensive vision for the development of the city. Sofia’s budget should address the citizens, where they live and raise their children,” said Milka Hristova.
According to her, Sofia is divided into two faces, and this is not just in words. “It is a fact that more projects are planned for the periphery of the city, but they are not implemented, unlike those in the center. If you look at the implementation of the budget for 2014 and the projects that were not implemented and were transferred to the current budget , they are precisely in the outermost neighborhoods,” said Hristova.
She also commented on the fact that against the background of the missing money for education and healthcare in the capital, 74 million is allocated. BGN, of which BGN 58 million BGN – European funding and 16 million BGN – co-financing from the CO budget for the construction of a water supply network for Bankya. “Every district of Sofia has the right to such financing, but the question here is – why exactly Bankya and why precisely so many funds. This is a matter for future analyses, but in any case there remains the element of doubt that Bankya enjoys a more special kind protections, which is easily explained,” she concluded.
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How can the Sofia Municipality ensure that budget allocations benefit both central areas and outer districts to promote inclusive development?
Welcome guests, we are delighted to have you with us today for a discussion on the recent developments in the Sofia Municipality’s budget. Let’s start by talking about GERB’s increased focus on cutting ribbons for new projects and their prioritization of the 2015 budget to benefit from it ahead of the local elections. What are your thoughts on this approach?
BSP: Thank you for having us. Our view on this approach is that while ribbon-cutting ceremonies might create a positive impression, they do not necessarily equate to effective governance or long-term development plans. The budget is formed from taxpayers’ money, and every citizen has a stake in its success. Any government claiming to bring significant improvements should be transparent and accountable in their spending.
Guest 1: I agree with that sentiment, but it’s also crucial to acknowledge that local elections are around the corner. It’s only natural for any ruling party to want to show visible progress to maintain their popularity. The budget is a powerful tool to that end, and GERB seems to be using it quite effectively.
BSP: Absolutely, but this shouldn’t come at the expense of proper planning and allocation of funds. As mentioned in the article, the 2015 budget more or less repeats last year’s figures in terms of revenue. What are your thoughts on this? Does it indicate a lack of proactive planning or just sound fiscal management?
Guest 2: As an accountant, I would say it’s essential to have a clear understanding of the revenue streams and ensure that they are maximized. However, the fact that the budget is implemented at 95% is impressive. That being said, I do understand the concerns raised about the city’s ability to manage its huge property portfolio effectively and generate enough income from it.
BSP: Yes, the capital program for 2015 seems ambitious with significant infrastructure projects planned, but there appears to be a disproportionate focus on areas within the city center at the expense of the outer districts. How does this align with the vision for a unified and inclusive development of Sofia?
Guest 1: It’s a valid concern, but we must also consider the potential economic benefits
