Bulgaria's FinMin Plans to Shut Down Agencies

According to the Bulgarian Finance Minister, Simeon Djankov, with the shutdown of 22 agencies, there will be a cut of 3 000 state administrative staff, which will save the state BGN 4 M to BGN 6 M per month. Photo by BGNES

Bulgaria's finance minister has announced that the government is considering shutting down 22 agencies by the end of 2010, which, in his words, will cut the state administration by 3 000 people.

“This effectively saves the state about BGN 100 M per month. However, the benefits will be felt next year because this year we will have to pay between 4 and 6 salaries to the redundant workers,” Finance Minister Simeon Djankov said for the Bulgarian private TV channel Nova TV.

He noted that the state is saving between BGN 4 M and BGN 6 M per month because of the shutdown of the Agency for Economic Analysis and Forecasting and the State Receivables Collection Agency, which were shut down since Djankov has become Finance Minister.

He also denied to comment on the complaints by the Bulgarian Socialist Party, who warned the Prosecution's Office that Djankov has been giving out classified information with his announcement in October 2009 that there has been a secret agreement between his predecessor, Plamen Oresharski and the Chairman of the Bulgarian Central Bank, BNB, Ivan Iskrov, to deposit part of the fiscal reserve in private banks.

“If I start to think about every reproach of the opposition, I will not have time to work,” Djankov said.

The finance minister has also stated that the macro framework of the 2011 state budget was discussed Sunday with the PM Boyko Borisov. He expressed his hope that the project will be presented in the Parliament in September.

Djankov also assured that tax burden will not be raised next year and pointed that Bulgaria was the only EU member-state to reduce the tax burden in 2010 with the fall of the insurance contribution by 2 percentage points.

The minister has confirmed his position that Bulgaria does not have EUR 280 M to pay by September the Russian “Atomstroiexport” for one of the reactors of the “Belene” nuclear power plant.

In his words, he and the Russian First Deputy Prime Minister, Viktor Zubkov, have negotiated to come up with a new agreement by September 15, in order to settle the issue without judicial intervention.

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