Bulgaria Municipal Revenues Collapse over Crisis

Municipal budgets in Bulgaria are 30% down because of the 20% decrease of their own income and the 10% decrease of the State subsidies.

Bulgaria's local authorities report a drastic decrease of municipal revenues from the real estate sales tax and the sale or rent of municipal properties.

In many municipalities the collected tax fees are only 10% of the planned ones, while the sales and rent revenues are also minimal.

The mayors and the leadership of the National Municipal Union are alarmed by the possibility of becoming indebted to the extent it would jeopardize the 2010 budget.

In order to avoid those negative effects some of the mayors plan unpopular measures such as increasing day care and service fees.

In comparison with the first quarter of 2008, the municipal budgets are 30% down because of the 20% decrease of their own income and the 10% decrease of the State subsidies.

Municipal councilmen say that they have alerted the Prime Minister, Sergey Stanishev and Finance Minister, Plamen Oresharski about the looming collapse of local health care and education.

 

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