Bulgaria Govt to Slash Bureaucrats’ Financial Incentives

Finance | April 12, 2010, Monday // 08:31|  views

The Borisov government has found a way to slash state administration spending by 10% despite an adverse court ruling, Finance Minister Djankov (right) has hinted. Photo by BGNES

Bulgaria’s Borisov government intends to abolish the bonuses of civil servants ahead of schedule.

The so called “additional material incentives” are allocated to the Bulgarian state administration employees every quarter.

The government planed to slash the premiums as part of a larger reform the administration’s payment system in 2011. However, the change will probably come earlier in order to cut state spending, the Bulgarian National Radio reported citing its unnamed sourced.

The Borisov government has found a way to go ahead with the planned 10% cut of state administration spending even though last week it backed out of measure after a Constitutional Court ruling which made it likely that such a step might be disputed and declared illegal.

On Sunday, however, Bulgaria’s Finance Minister, Simeon Djankov, hinted that the Cabinet had figured out how to carry out the cuts without getting into a legal conundrum. The issue will be discussed at an emergency meeting of the Bulgarian government on Monday.

The 10% reduction of state administration expenditures is a major anti-crisis measure in the 60-item package the government approved recently as it is expected to save BGN 450 M from 2010 state budget spending.

The cumulative effect of the 60 measures is calculated to be BGN 1,6 B – equaling the deficit accrued in Bulgaria’s budget in the first quarter of 2010.

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Tags: Simeon Djankov, finance minister, anti-crisis measure, anti-crisis program, state administration, state spending, budget deficit


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