Bulgarian Right Wing Reiterate Warning of Budget 'No' Vote

Finance | June 21, 2010, Monday // 14:48|  views

The co-Chairs of Bulgaria's right-wing Blue Coalition – the DSB leader, Ivan Kostov, and the UDF leader, Martin Dimitrov (r), demand guarantees the ruling GERB will carry out the planned structural reforms. Photo by BGNES

Bulgaria's right-wing Blue Coalition reiterated Monday warnings they will not back the cabinet's updated 2010 budget on second reading unless their demands are met.

The right wing is asking for guarantees the ruling Citizens for European Development of Bulgaria (GERB) will carry out the structural reforms in the State administration, the retirement and the health care sectors by clearly pointing out what finances are slated for them, and for optimizing the layoffs in the public sector.

In addition, the Democrats for Strong Bulgaria (DSB) party, one of the two members of the Coalition, demand clear and upfront information how the cabinet will use the BGN 1.2 B from the fiscal reserve to be transferred under the direct authority of Prime Minister, Boyko Borisov, who will be able to spend them without asking the Parliament when there are “unforeseen and emergency expenditures.” DSB wants the resources for each separate sector to be listed upfront, not just including the BGN 660 M that would be used to pay businesses for concluded contracts.

The right wing's main criticism is also geared towards the cuts in the Health Ministry and the stalled health care reform. Last week Finance Minister, Simeon Djankov promised them the reduction of the health care budget would be not BGN 160 M, but BGN 106 M.

DSB insist on firm guarantee the BGN 54 M will remain in the health care budget in order to protect emergency rooms, cancer and AIDS patients. They say the amounts have been negotiated in advance and then taken out of the budget before the first reading in the Parliament.

DSB have also prepared a list with State institutions that could be closed or optimized which they will submit to the cabinet.

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Tags: Blue Coalition, UDF, DSB, Ivan Kostov, Martin Dimitrov, Budget 2010, budget revision, National Assembly, deficit, fiscal reserve, Simeon Djankov

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