/ world today news/ “In recent days, there has been talk again about the greatly deteriorated fiscal position of the country – a truly worrisome topic. Unfortunately, unsubstantiated, literary in nature, statements dominate again. This is a good reason for several digital references”, he wrote on former Prime Minister Plamen Oresharski on his social network page.
For the period from mid-2009 to the first quarter of 2013, the fiscal position worsened by over BGN 8 billion, writes Plamen Oresharski.
He recalls that for the entire period after the great monetary and financial crisis from 1997 to 2008, several Bulgarian governments refrained from large budget deficits, accumulated fiscal reserves and reduced public debt.
This was most clearly evident during the period in which I had responsibilities to lead the country’s fiscal policies – 2005-2008, when the budget consistently ended with surpluses of 3 and over 3% of GDP – record achievements within the entire EU. At the end of this period – the middle of 2009, fiscal reserves reached BGN 8 billion, and the public debt fell to about 12% of GDP – a unique result (second in the EU) against the background of its size of over 120% from the second half of the 90 those years, Oresharski emphasizes.
He notes that after that a reversal of the trend was noticed – policies of budget deficits, reduction of fiscal reserves and increase of government debt were adopted.
For the period from mid-2009 to the first quarter of 2013, the fiscal position worsened by over BGN 8 billion – reduced fiscal reserves from BGN 8 to under 4 billion and debt increased from BGN 10 to over 14 billion. Among the reasons there were also objective ones – a bad economic environment outside and inside the country, but they cannot fully explain the deteriorating fiscal position, Oresharski writes.
For the period from the middle of last year to the middle of this year, the government I led stopped the negative fiscal trends – the only possible task for such a short period. This is shown by the numbers, and is not a verbal incantation, he emphasizes and adds: It is true that an increase in public debt was also observed during this period, but at the expense of improved fiscal reserves – by the middle of this year, they reached just under 9 billion BGN – a higher level even than in 2009. Part of their increase – at the expense of newly issued debt on foreign markets at the best parameters for our entire recent history.
It seems that foreign investors have valued relatively highly what some commentators inside the country characterize with catastrophic terminology…! The paradox in this case is that such comments are essentially self-criticism dressed in the form of accusations against a government that was not given time to even make any more serious mistakes, Plamen Oresharski also states.
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