Ex-FinMin: Bulgaria's Fiscal Policy Deepens Economic Crisis

Finance | July 5, 2011, Tuesday // 14:16|  views

Plamen Oresharski, Bulgarian Minister of Finance (2005-9) and current socialist MP. Photo by BGNES

The fiscal policy of PM Boyko Borisov's center-right GERB cabinet only leads to a prolonging the period of depression in Bulgaria's economy, according to former Minister of Finance Plamen Oresharski.

Oresharski commented two years after Borisov's GERB part swept general elections on July 5, 2009.

"The collectibility of revenue has visibly dropped, excessive budget deficits above 3% of GDP were realized, the fiscal reserve shrunk with some BGN 3 B, while state debt has grown with another BGN 1 M," said the ex-FinMin and present MP from the Bulgarian Socialist Party.

He also snubbed present Minister of Finance Simeon Djankov early ambition to join the Euro, describing his 2009 priorities as "naive absolutization of the idea of joining ERM-II against all odds."

Oresharski also criticised the delayed payment of arrears which not only proves detrimental to the economy, but also allows for warping of budget accounting.

"If we also take into account the chaotic signal that this government is sending out every other day regarding key fiscal parameters, it is not hard to explain the loss of trust on the part of businesses and households," added he.

The former Bulgarian Minister of Finance further commented that although in 2009 the Borisov cabinet could well blame the former three way coalition government, with two years in power that is no longer plausible.

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Tags: Boyko Borisov, Simeon Djankov, deficit, debt, state debt, fiscal reserve, GERB, Bulgarian Socialist Party, Plamen Oresharski, euro, arrears


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