Bulgaria’s budget for 2022 will be in deficit
2022.12.31 02:12
Bulgaria’s budget for 2022 will be in deficit
Budrigannews.com – The finance ministry predicted that Bulgaria would surpass a revised target of 3.4% by the end of 2022 and have a fiscal deficit of 1.5 billion levs ($821.11 million), or one percent of GDP.
The Balkan nation was able to reduce its fiscal deficit this year from 3.0% in 2021 thanks to higher payments from state energy producers, lower capital spending, and better tax collection than anticipated.
As a result of the country’s political unrest, Bulgaria has decided to extend its budget for 2022 into the new year until a new government is elected and develops its own financial strategies for 2023.
The interim government has warned that the fiscal shortfall will rise to more than 6.6% of economic output in 2023 as a result of increased spending on state pensions and other social programs in the second half of 2022 in the midst of a looming economic slowdown.
The fiscal deficit for 2022 has been reduced as a result of lower investment and delays in accessing funds from the European Union. However, the finance ministry stated in a statement that this spending would be carried over into 2023, putting more pressure on the budget the following year.
The country’s fiscal deficit for the first 11 months of 2022 was 398 million levs, or 0.2% of the year’s economic output, the ministry reported late on Friday. The end of the year is typically when Bulgaria increases its state spending.
As a result of increased payments from energy producers, the finance ministry anticipated that government revenues would have increased to 64.7 billion levs at the end of December, up from 52.3 billion levs a year earlier, supported by high inflation.
It predicted that expenses would have increased to 62.9 billion levs, up from 54.6 billion levs a year earlier. This was primarily because businesses were compensated to protect them from rising energy costs and some state salaries and pensions were increased.
By the end of November, data showed that fiscal reserves held in a currency regime that ties the lev to the euro were 12.8 billion levs.
More New York Fed reported influx of funds in amount of 2.5 trillion
