Bulgaria to End 2009 with 0,7% Budget Deficit

The Bulgarian government has revised downwards its estimate for GDP decline from 6,3% to 4,9% in 2009, Finance Minister Simeon Djankov said at a press conference. Photo by BGNES

Bulgaria will end November and December this year with a preliminary budget surplus of BGN 48 M each, the finance ministry said on Wednesday.

The finance ministry expects its efforts to improve tax collection to yield results in the last quarter, but this will not be enough to balance the budget at the end of 2009, when BGN 500 M or 0,7% of gross domestic product (GDP) is foreseen.

The Bulgarian government has revised downwards its estimate for GDP decline from 6,3% to 4,9% in 2009, Finance Minister Simeon Djankov said at a press conference.

The government has approved the proposal of Minister Djnakov for updating this year's budget and putting in a deficit of BGN 500 M.

The International Monetary Fund expects GDP to fall 6.5% this year and 2.5% next year. EBRD forecasts GDP to fall by 1.5%, following a 6% drop this year.

Bulgaria, the European Union’s poorest country, is currently going through its first recession in 12 years after a three-year lending boom stalled and foreign investment dried up.

The new government has approved an austerity budget for 2010 and will target a zero gap in a bid to speed up euro zone entry and beat recession.

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