Bulgarian National Bank Governor Recommends Fiscal Buffer in 2024 Budget

During a parliamentary budget committee meeting, Dimitar Radev, the Governor of the Bulgarian National Bank (BNB), advocated for a strategic fiscal approach, proposing a 10% buffer allocation within the budget for 2024. This buffer, if not utilized due to unforeseen risks, would be available for expenditure in the final quarter of the year. Radev emphasized the importance of prudent financial planning in the face of uncertain economic landscapes.

Acknowledging positive strides in the budgetary process, Radev commended the potential early passage of the budget by year-end. He also stressed the necessity of elevating the minimum fiscal reserve to at least BGN 4.5 billion over a three-year forecast, aiming for a reduction in the budget surplus while addressing the ever-changing economic environment.

Meanwhile, Finance Minister Asen Vassilev presented the foundational parameters of the upcoming budget, urging thorough scrutiny of the capital program by parliament members. Vassilev underscored the budget's ethos, highlighting the need to transition away from a reliance on inexpensive labor to foster economic growth. He articulated that enriching the nation necessitates strategic investments that empower workers with higher productivity and wages, laying the groundwork for Bulgaria to catch up with middle-European standards.

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