SOFIA (Reuters) – Bulgaria expects a 2021 fiscal deficit of 1.5 billion levs ($398). million), equivalent to 1.0 percent of economic output, better than the revised target of 3.4 percent.
Better-than-expected tax collection, higher payments from state energy producers and lower capital spending helped the Balkan country register a fiscal deficit this year from 2021 3.0% reduction.
Bulgaria has decided to extend its 2021 budget into the new year due to political unrest until a new government is formed and develops its own financial plan for 2021.
The interim government has warned that 2023 increases in state pensions and other social spending in the second half of the year mean the fiscal deficit will shrink amid a looming economic slowdown Inflated to 2023 over 6.6% of economic output.
Weak investment and delays in tapping EU funds have lowered the 2023 fiscal deficit, but the Treasury said in a statement that the spending would be shifted to Income 2023, increasing budgetary pressure for next year.
During the months before 2021, the country registered A fiscal deficit of 398 million levs, or 0.2 percent of economic output for the year, the ministry said late Friday. Bulgaria often loads its state spending towards the end of the year.
Treasury forecasts government revenues to rise from 11 at end-December, supported by high inflation. A year ago There are 3 billion levs, mainly due to increased payments to energy producers.
It predicts a jump in spending from 398 to 52.9 billion levs . A year ago there were 6 billion levs, mainly due to compensation payments to businesses to protect them from soaring energy costs, and wage and pension increases in some countries.
Fiscal reserves held under a currency regime pegged to the euro are 12.8 billion levs as of end-November, data showed.