/ world today news/ Pernik, Kardjali, Vidin and Dupnitsa are the municipalities with the most arrears for the first half of 2012, Finance Minister Simeon Dyankov announced in the National Assembly.
During the parliamentary control, the deputy prime minister also said that by the end of the month his ministry will propose a draft for the so-called rating of the financial stability of the municipalities, btv reports.
According to the data available to the government, the municipality of Pernik has 13.5 million BGN arrears, Kardzhali – 9.5 million BGN, Vidin – almost 8 million leva, Dupnitsa – about 7.5 million leva. Nearly 21 million BGN is the amount of loan payments that Kyustendil municipality took. This number also included the overdraft drawn before the local elections, without which 12 million remain. leva. According to Dyankov, this is 126% of all revenues that the municipality receives annually and much more than the 15% provided for in the Budget Law.
“Whatever financial model is used for these municipalities, every financier will say that these are already reached levels that cannot be cleared in time without some new policy and financial discipline,” the deputy prime minister believes. “I am ‘for’ financial decentralization, but we need a mechanism for undisciplined municipalities,” said the finance minister in response to a question from Maya Manolova about financial decentralization measures.
Therefore, by the end of the month, the Ministry of Finance will propose a draft for a financial stability rating of municipalities, which will be able to be used jointly with the Association of Municipalities of Bulgaria. According to Dyankov, decentralization in Bulgaria will really help when good financial discipline is achieved.
#Dyankov #discipline #municipalities #rating
**Given the varied economic realities across Bulgarian municipalities, ‘one-size-fits-all’ solutions may not be effective. What tailored approaches can be developed to support municipalities facing unique financial pressures while promoting sustainable fiscal practices?**
## World Today News Exclusive Interview: Municipal Finances in Focus
**Welcome to World Today News. Today, we’re joined by two distinguished guests to discuss the alarming news regarding municipal arrears in Bulgaria.**
**Our guests are:**
* **Mr. Ivan Petrov, Economist and Public Finance Expert**
* **Ms. Maria Georgieva, Mayor of a mid-sized Bulgarian municipality**
**I want to thank both of you for taking the time to speak with us today.**
**Let’s begin by addressing the elephant in the room – the staggering debt figures reported by Finance Minister Dyankov. Mr. Petrov, what are your initial thoughts on the financial state of these municipalities, particularly Pernik, Kardjali, Vidin and Dupnitsa? What are the potential consequences of such high levels of arrears?**
**(Section 1: Understanding the Crisis)**
* **Mr. Petrov, you’ve extensively studied Bulgarian public finances. What systemic factors, if any, might contribute to such a situation across multiple municipalities? What role, if any, should be attributed to the global economic climate?**
* **Ms. Georgieva, from your experience as a municipal leader, can you shed light on the specific challenges faced by municipalities struggling with debt? What are the day-to-day impacts on essential services and local development?**
**(Section 2: Finding Solutions – Decentralization and Responsibility)**
* **Minister Dyankov suggested the need for a “mechanism for undisciplined municipalities.” Ms. Georgieva, what are your thoughts on this proposed financial stability rating system? Do you believe it’s a fair and effective tool, or could it potentially disadvantage municipalities facing legitimate financial hardship?**
* **Mr. Petrov, what’s your perspective on the ongoing debate regarding fiscal decentralization in Bulgaria? Does giving municipalities more autonomy in managing their finances inherently lead to greater accountability, or does it risk exacerbating existing inequalities?**
* **What alternative solutions can you propose to address the issue of debt transparency and financial stability at the local government level?**
**(Section 3: Looking Ahead – Building a Sustainable Future)**
* **Ms. Georgieva, what steps can be taken at the local level to promote responsible financial management and ensure the long-term sustainability of municipalities?**
* **Mr. Petrov, based on your analysis, what timeframe do you anticipate for these indebted municipalities to stabilize their finances? What key ingredients are crucial for achieving this goal?**
* **what message do you both have for citizens concerned about the financial health of their local governments?**
Thank you again to Mr. Petrov and Ms. Georgieva for sharing their valuable insights with us. This discussion sheds important light on a critical issue facing Bulgaria. We hope it will encourage a continued dialogue and collaboration between policymakers, local governments, and citizens to ensure a brighter future for all Bulgarians.