Bulgarian Finance Minister: Time to Start Spending More

Finance Minister Djankov has called upon Bulgarian companies and consumers to start thinking about increasing their spendings.

The Minister declared Monday with a certain degree of confidence that the Bulgarian economy is starting to grow, and firms and people in the country should consider spending more money as the end of the economic crisis is in sight.

With regard to the draft bill for the revision of the 2010 state budget, Djankov said on BNR that the government will grant additional subsidies for health, agriculture, and social spending only on the condition of further reforms on part of the respective institutions.

The budget revision bill, which was tabled to Parliament last week, provides for a 4.8% budget deficit in 2010 as a result of a reduction of revenues by BGN 2 B, and increased spending in certain sectors, which has brought much criticism for the Borisov government.

Thus, the revised budget provides additional BGN 220 M for Bulgaria’s National Health Insurance Fund, BGN 142 M more for social benefits, and BGN 116 M for subsidies to tobacco growing farmers.

Finance Minister Djankov vowed that the government will come up with a special plan about how to find other means of employment for the tobacco producers.

He praised Defense Minister Anyu Angelov as one of the great reformers in the country saying the government had no way of slashing any more of the defense expenditures for 2010.

“A dozen states in Europe have already resorted to cutting social benefits and salaries, and we are avoiding that,” Djankov said.

He answered criticism about the effects of his austerity measures on municipalities and the judiciary by saying that these two sectors are the only ones where employees actually saw their salaries grow since the beginning of the year.

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