The Budget
Bulgaria has pursued a conservative, cautious budgetary policy over the last years. The government has managed to sustain the strict financial discipline and achieve budgetary balance, according to the regulations of the economic program agreed with the International Monetary Fund.
Tab. Consolidated budgetary surplus/deficit in 2000 - 2008.
|
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
|
Surplus / deficit in BGN millions |
-269 |
-255 |
-218 |
0,9 |
606,1 |
808,7 |
1 485,0 |
39,4 |
1 014,9 |
|
Surplus / deficit in % NGP |
-1,06 |
-0,9 |
-0,7 |
0 |
1,6 |
1,9 |
3,0 |
0,1 |
1,5 |
Source: Bulgarian National Bank
Since 2003, Bulgaria has observed a budgetary surplus – it is quite a sensation in Central and Eastern Europe. However, keeping the budget in balance may be difficult in the long run because of the low rates of CIT and PIT taxes and the fact that Bulgaria needs more expenditure for the modernization of infrastructure. These expenses may burden the budget [despite the partial financing from the EU aid funds]. The improvement of tax collection is the key issue in sustaining the budgetary surplus.