/ world today news/ Finance Minister Vladislav Goranov‘s “Realistic Budget” for 2016 entered the first reading for discussion by the Budget Committee.
The number one financier himself defined the macro framework for next year and explained that next year’s budget will bring stability. Goranov defined the fiscal policy of our country as priority number 1.
In the 2016 budget, a deficit of BGN 1.8 billion or 2% of the Gross Domestic Product (GDP) of our country is set, which shows a tendency to reduce the budget deficit.
The maximum pledged new debt that our country will be able to take on in 2016 is BGN 5.3 billion.
The government also assumes that real GDP growth next year will be 2.1%, and this will come from an expected increase in consumption and investment growth in our country.
The idea is for this growth to reach 2.5% in 2017. The planned inflation for next year is around 0.5%.
Regarding the pledged revenues, the Minister of Finance indicated that they will amount to about BGN 33 billion in 2016 to BGN 35 billion in 2018. The “Borisov 2” cabinet is of the opinion that an additional BGN 1.5 billion from taxes and insurance will enter the state treasury next year.
Divided by sector, the government is ready to give BGN 3.9 billion for healthcare, BGN 3.1 billion for education, BGN 3.3 billion for defense and security, BGN 11.9 billion for social security and BGN 2.6 billion BGN for maintenance of state services.
The expected decrease in the workforce will be weaker with the adopted measures to increase the retirement age, explained Vladislav Goranov. According to him, the advantage of the budget is the preservation of the low level of the tax burden.
AIKB supports the budget for next year, commented Vasil Velev. We support financial stability, he added, pointing out that they are forecasting lower GDP growth.
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