The Bulgarian government will spend over BGN 63 billion in 2022. For the first time Bulgarian citizens can track the spending of their funds on a daily base in an accessible, interactive and easy to use application. In addition, the tool developed by the IME and “Data for Good” teams allows for tracking of every payment of every government institution from the beginning of 2019 until today, with various breakdowns. Public spending in Bulgaria has never been on display in the way it is today.
"Economic Policy Review" Bulletin ISSN 1313 - 0544
During the first week of the 47th National Assembly an attempt was made to resume the Bulgarian constitutional debate by forming a temporary commission to deal with proposals for amendments in the Constitution of the Republic of Bulgaria. This is a natural continuation from the already forgotten summer protests of 2020 towards more justice and eradication of corruption.
The impact of the 2020 economic crisis on the investment activity of non-financial enterprises is ambiguous, given that in different parts of the country (sometimes even within a single economic center) opposing trends can be observed. In the first year of the pandemic firms in many municipalities (155 in total) saw a decline in expenses for acquiring tangible fixed assets, in comparison to 2019. Despite this, investment in such assets rose on a national level, which was driven mainly by the 41% yearly rise in Sofia. This can be attributed to the significant boom of residential building construction in the capital, where housing demand has been strong ever since the revoking of the strictest Covid-19 measures.
This month IME released the movie “2% in your municipality”. The movie tells the story of the challenges faced by the local government in Bulgaria, gives context to the debate regarding the financial autonomy of municipalities and presents in detail the idea of tax sharing –transferring 1/5 of income tax revenues in the country. This idea that has been discussed many times, and recently IME presented detailed accounts of the expected effects on municipalities.
The impact of the 2020 economic crisis on the investment activity of non-financial enterprises is ambiguous, given that in different parts of the country (sometimes even within a single economic entity) opposing trends can be observed. This week as part of “265 stories about economics” we present the distribution, the role, and the dynamics of foreign direct investment in 2020.