The Ministry of Finance announced the preliminary data about the fulfillment of the consolidated budget for 2007. The revenues reached over 24 billion levs, expenses – almost 21.4 billion levs, while the surplus is 2 111.6 million levs.
"Economic Policy Review" Bulletin ISSN 1313 - 0544
In February the report on the State Budget implementation for 2007 was released. Now it is possible to evaluate the effects of the fiscal policy carried out during the year and its impact on the public revenues, which are a reflection of the development of the private sector of the economy. As the economy grows, new jobs are created and the revenues in the budget increase accordingly.
According to the European Commission and other international institutions the economy of Bulgaria (as well as Latvia and Estonia) is overheating for a consecutive year – the credits increase, respectively increases the difference between solvent demand and the products produced, inflation is increasing, the external misbalances are growing and as an overall result are reduced the competitiveness of the country and its perspectives for development.
Last year based on a request of the then Minister of Economics, we made our recommendations for economic measures, which in our opinion the Government must undertake (they are available on the web site of IME). One year later we could evaluate what happened and which of the publicly proposed measures by IME have been implemented. The general conclusion is that one third of our recommendations have been accepted, but some parts of them are in the process of passing. The big question is how they are applied in reality, as this has proven to be the big problem.
With reference to the protests of the milk producers in the country, IME offers to your attention a special test to evaluate your position on this important problem.
During last week from word to word suddenly the Government decided to organize its own golf company. The idea came about the middle of last year, when a special task force was set up with the colossal task to determine how Bulgaria should become a competitive golf destination, which could be attractive to solvent tourists. After half a year of “hard thinking” the idea was born to create a company, 100% state owned, which is to build and than manage golf complexes.