2010 will be worse than the current year
The budget will affect the Bulgarians in a way that 2010 years will be worse than 2009.
This was announced by the former energy minister Petar Dimitrov on Radio Focus. He explained that in a state of crisis the state should support businesses but in the new budget the resources destined to combat the crisis have been greatly reduced or even cut off. Dimitrov added that having been attracting investors, the country has committed to build infrastructure, which is an incentive measure, but the budget allocation for infrastructure has been reduced three times.
"Instead of creating better conditions for business in time of crisis, we create worse conditions," Dimitrov commented.
He was explicit that this policy will affect jobs and general life expectancy of the Bulgarians.
Dimitrov said that the prognoses of the BNB and other financial organizations are that there won't be a downturn in the economy but the country will have zero growth.
The budget itself foresees 2 % decline in revenues and if the forecasts of the financial institutions are correct, it means that there will be a plus in the budget, which in fact is the best option. However, if the decline is greater than the expected 2%, an update will be required and it would be extremely cruel.
Petar Dimitrov added that the problem arises from the fact that the money allocated to the municipalities is highly contracted in the budget. Hardly 80 - 90 municipalities will have the means to co-finance European projects, and all the other municipalities will not have money because the state does not engage in the criteria that are given to support them.
"This means that instead of absorbing more EU money, the rate of absorption will fall even more," Dimitrov was categorical. According to him in a time of crisis it would be normal to lessen the money for ministries, even the presidency, but not for investments.
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