Bulgaria's Govt to Project 3% GDP Growth in 2011 Budget Act

Bulgaria's Finance Minister Simeon Djankov (left) plans for a 3% economic growth in 2011. Photo by BGNES

Bulgaria's government does not provide for any tax hikes in the draft 2011 state budget bill, announced Finance Minister Simeon Djankov.

“We have made our research and projections for 2011, and there will be no increases of taxes and excise taxes, as well as no cuts of salaries and retirement pensions,” Djankov said speaking on the BNR Sunday.

In his words, the Borisov Cabinet plans for a 3% growth of the GDP next year, and a budget deficit of 2.7% of the GDP.

The government has already drafted the macroeconomic framework of the 2011 state budget, and will present it to the other EU member states during the ECOFIN meeting over the upcoming week.

Djankov also mentioned that at the end of 2010 the unemployment rate in Bulgaria will be below the 11.4% forecast by the Cabinet.

His statements revealing details about the draft 2011 state budget come just three days after the Parliament approved the 2010 State Budget Revision Act, providing of a GDP growth of 1% in 2010, and a budget deficit of 4.8% on cash base, and 3.8% under EU accounting rules.

This law has revised Bulgaria's originally planned budget deficit of 1.9%, and has led the EC to consider setting the country under the excessive deficit procedure. According to European Commission statements, Bulgaria should not have problems reducing its deficit below the 3% limit in 2011.