Bulgarian Ministers Vow Draconian Administrative Cuts

Finance | July 21, 2010, Wednesday // 13:29|  views

Bulgaria's Finance Minister, Simeon Djankov, is convinced cuts in the State administration will bring a minimum of BGN 200-250 M per year into the treasury. Photo by BGNES

Bulgaria's Finance Minister, Simeon Djankov, announced Wednesday that about one third of all structures in the State administration will be cut.

Djankov spoke after the regular meeting to the Council of Ministers, which approved the plan for the administrative reform.

According to the Minister, the cuts will bring a minimum of BGN 18-20 M per month and BGN 200-250 M per year into the treasury with some of the savings already carried out and reflected in the 2010 updated budget while the others will be included in the 2011 projected budget.

Currently there are 106 State administration units – down form 115 when the ruling, center-right Citizens for European Development of Bulgaria (GERB) party began its term about a year ago. The layoffs until now include 10 860 State employees with those announced by the Interior Ministry. The plan is to let another 2 500 go in the near future.

Agriculture Minister, Miroslav Naydenov, announced the merge of 3 structures in the newly created “Food Safety Agency” and the closure of entire departments as result. Another change includes the merge of the “Tobacco” and “Agriculture” Funds. The Agency “Hail Suppression” will be transformed while the 100 labs within the Ministry will be reduced to 6 and later to 3. All changes will lead to the layoff of 1 600 employees.

Defense Minister, Anyu Angelov, announced 40% cuts from the administration of military colleges by the end of August. He further spoke about layoffs in the army, but without stating any numbers since these must be agreed on with the President, who is the Commander in Chief.

Health Minister, Anna-Maria Borisova, informed that part of employees from the Regional Inspectorates for Public Health Control will be transferred to the "Food Safety Agency," which will bring the State an additional BGN 4 M.

The Foreign Ministry is doing a review of 25 diplomatic missions, but still does not have the exact number of those facing closure. Long-term diplomatic trips abroad will be eliminated and 7 properties of the Ministry will be sold or transferred to other institutions. The Ministry is also considering delegating Bulgarian visas issuing rights to other countries to reduce the number of Consular offices.

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Tags: state administration, state administration reform, cuts, layoff, Simeon Djankov, Anna-Maria Borisova, Miroslav Naydenov, Anyu Angelov, Council of Ministers, budget


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