Bulgaria's Budget 2014 Seeks to Restart Economy, Growth Set at 1.8%

A file photo shows mothers protesting against Bulgaria’s austerity budget 2013 with their children, who carry signs, reading “There is no budget for me”. The current government says budget 2014 is dedicated to growh, not austerity. Photo by SPA

Bulgaria's finance ministry has kept unchanged its forecast for economic growth next year at 1.8%, a new draft budget shows.

According to the draft budget, due to be tabled in parliament in the coming weeks, 2014 budget revenues will climb to BGN 30.8 B, up by BGN 501 M in comparison with the current year.

Spending is forecast to increase to BGN 32.3 B, while deficit to drop to 1.8%.

Inflation is projected at an average 1.8%.

The government says it has based its forecast of 1.8% economic expansion next year on expected improvements in domestic demand thanks to improved business environment and more investments.

The draft budget figure for GDP growth however exceeds the latest forecast of the International Monetary Fund.

At the beginning of October IMF downgraded its global GDP forecast for 2013 and 2014, including for Bulgaria.

In its biannual assessment of the world economy, the IMF predicts a 0.5% growth for Bulgaria in 2013, as opposed to the 1.2% forecast in April.

For 2014, the figure is 1.6%, down from 2.3% in the April assessment.

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