/ world today news/ These days the state took out a new debt of BGN 100 million, this time an internal debt. We have already downloaded the entire external one. It never became clear why.
Against the background of all the criticism directed at the cabinet – for insane reforms, for lobbying laws, for lack of adequate measures for this or that problem, there is something that cannot be denied to them. One thing in which they are undisputed “professionals” and unsurpassed fakirs. Namely – to handle our money deftly and skilfully, like a magician – today it is there, tomorrow it is gone, and there is no trace. Arguments – divergent, contradictory, actions – “in the dark”. Clarity – zero. And not some “small” millions, but billions.
And now the facts. On March 15, 2016, Bulgaria surprisingly withdrew 2 billion euros of new debt from international markets. Surprising, because there was no objective and imperative reason for all the debt to be withdrawn at once, and at the beginning of the year. In the emission calendar, it is written that for 2016, our country can take out a new debt of BGN 5.3 billion, of which BGN 3.9 billion (EUR 2 billion) from foreign markets. Well, exactly they were withdrawn at once, without convincing arguments. By the way, the debt of 16 billion was also voted.
The new loan of 4 billion would be used to refinance old debt and as a buffer in the fiscal reserve. But why is there a need to provide a buffer when at this time we have a huge fiscal reserve and also a surplus? The old debt, which we have to pay this year, is only EUR 450 million (BGN 0.9 billion). There are 3 billion left of the new debt taken, why did it have to be withdrawn?
Let’s also see the data of the Ministry of Finance on the main budget parameters before taking the debt.
As of January 31 of this year, the size of the fiscal reserve was a record – BGN 9.2 billion. The budget surplus was BGN 991.6 million. A month later, as of February 29, the fiscal reserve was BGN 8.9 billion. The budget surplus is BGN 915.2 million. That is, both months the balance of the fiscal program is positive, there is no deficit, we have a surplus, and a high one at that. Not sure why On March 15, we will withdraw BGN 4 billion. Moreover, the Ministry of Finance constantly brags about over-implementing the tax revenues in the budget.
If not spent this year, the money from the new loan will be able to be used to repay the debt due next year (€950 million), the Ministry of Finance said. Yes, but a new loan of nearly BGN 3 billion is planned for next year as well, for the maturity in question and again for a buffer.
We come to the paradox – how, with so many surpluses and buffers, without making tangible reforms and investments, at the end of the year we still find ourselves in deficits and we still have to update the budget to take out new debt? Come on, enough stealing already!
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