Bulgaria PM to Propose Budget Overhaul after Early Elections

Interim Prime Minister Georgi Bliznashki described Bulgaria's financial situation as "extremely serious" and and a budget overhaul as "imperative".

He also said the step should be a top priority for the next National Assembly to be formed this autumn.

"It will be necessary to update the [state] budget and we will propose this after the early parliamentary elections are held," the Bulgarian National Radio quoted Bliznashki as saying at the National Council for Tripartite Cooperation on Thursday.

The National Council for Tripartite Cooperation includes government officials, trade-union representatives and employer organizations.

In Bliznashki's words, finance, banking and energy are the three sectors in dire straits, with some BGN 900 M worth of debts accumulated in energy just this year.

He echoed caretaker Economy Minister Vasil Shtonov's remarks that an electricity price hike will be inevitable to make up for deficits within the sector.

Bliznashki also argued the previous government's attempts to restrain energy prices proved to be harmful as it created "illusions" in society.

Finance Ministry officials meanwhile warned some state institutions would be unable to pay salaries at the end of the year unless an update is adopted.

Trade unions and employer associations also supported Bliznashki's view during the meeting.

The current caretaker government does not have any budgetary competences, since an acting Parliament is needed to give the green light to amendments within the fiscal plan.

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