/ world today news/ A little less than a year after the start of the government’s work, a certain calming of the business environment is observed, which comes from a different attitude of the revenue administration towards companies.
This was stated by the Minister of Finance Petar Chobanov at a press conference in Veliko Tarnovo, where the new products of the Bulgarian Development Bank (BDB) were presented to companies from the region. Chobanov added that during the meeting, the business representatives shared that there is very good communication with the revenue administration itself and that it responds to their problems. The Minister of Finance specified that work is currently underway to reduce 138 administrative regimes, and from the middle in 2013, the rhythmic recovery of VAT also began, which led to more working capital and opportunities for business development. He again recalled that in December 2013 VAT was refunded in the amount of BGN 542 million, which is about BGN 300 million more than in December 2012. The Minister of Finance also announced that the Public Investment Program “Growth and Sustainable Development of the Regions” will be continued in the following year, and for 2015 a resource of BGN 300 million has been allocated again for municipal projects. Chobanov believes that through the implementation of the projects this year, more than 20,000 new jobs will be created, which will be distributed throughout the country. Through the funds provided to the municipalities, regional differences will be reduced and the quality of life of the citizens will be improved. Over the past 4 years, the funds for capital expenditures of the local authorities have totaled BGN 300 million, and in the 2014 budget, such a resource is provided only within one year, Chobanov recalled. The government’s focus is also on the municipalities, which, for example, in 2015 alone will receive about BGN 100 million more in the form of an equalization subsidy, a capital subsidy, as well as funds for municipal roads and a subsidy for snow removal. Among the government’s priorities are investments, better education and better social policy to lead to economic growth. The Minister of Finance also commented on the growth forecast, which is included in the medium-term budget forecast for the period 2015-2017. He stated that there is an increase in internal business investments, which is also supported by the reduction of the administrative burden and the creation of a level playing field for companies.
Minister Chobanov added that if business creates greater security for people and jobs, consumption is expected to grow, for which social policy, which focuses on the most vulnerable groups, will play an important role. The forecast of 2.1% GDP growth, which some have declared unrealistic, depends on both government and business. “This is not a huge number, as we were used to growth of 1% of GDP in recent years,” Chobanov also commented. Regarding the equalization of the retirement age of men and women, Chobanov specified that the horizon for the implementation of this measure remains after 2021. He recalled that this is a recommendation of the European Commission, which is valid for all countries in the European Union, not only for Bulgaria. When the age will be equalized will be decided after a broad public discussion involving business, trade unions and citizens. The minister commented that “European requirements are important for us, but Bulgarian citizens are also important”, and until the adoption of the budget for next year, it will be clear what the pension reform will look like. “Our goal is not to have stressful situations like when the previous pension reform was adopted, when decisions were made very quickly to increase the retirement age,” Chobanov added. Chobanov also commented that the interest in BBR’s new products is very high, which is also evident from the presence of businesses at their presentation. The finance minister added that the bank addresses weaknesses and market niches that other financial institutions do not cover for one reason or another.
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