President Radev appoints Bulgaria’s caretaker government

Rumen Radev, President of Bulgaria (photo credit: BGNES)

Rumen Radev, President of Bulgaria (photo credit: BGNES)

President Rumen Radev will present the future caretaker government to be appointed by him on 27th January 2017. On Tuesday The Chairman of the 39th Parliament Ognyan Gerdzhikov was appointed caretaker PM.

President schedules elections in March

President Radev took an oath as the 5th President of Bulgaria on Jan. 19th 2017. On his first day he announced to dissolve Parliament as of January 27 and set March 26 as the date for the next early election.

The election on March 26, which follows the resignation of Boyko Borisov government, will be the third early parliamentary poll in less than four years. For the third time since 2013, a caretaker government will be in charge of preparing the election.

Surplus news released from Finance ministry before handing over

Bulgaria’s full-year 2016 consolidated budget showed a surplus equivalent to 1.6% of the projected gross domestic product (GDP), compared to a deficit of 2.8% of GDP in 2015, the finance ministry announced in its last statement before handing over to a caretaker government.

The shift to budget surplus was Bulgaria’s first since 2008. 2016 budget initially projected a deficit equivalent to 2% of GDP. The factors for the improvement in the budget stance are the higher revenues and the lower rate of utilization of expenditures than the annual plans, the ministry statement said. The consolidated budget surplus amounted to BGN 1.5 billion ($808.4 million/766.6 million euro) at end-2016, compared to a deficit of BGN 2.5 billion in 2015.

Revenues improved 102% of plan

Full-year consolidated budget revenue increased by BGN 1.75 billion compared with 2015, reaching BGN 33.95 billion at end-December, or 102.8% of 2016 plan, on the back of increased tax and non-tax revenues.

Revenues from direct taxes amount to BGN 5,037.3 million, or 107.5% as compared to the annual estimates, growing, as compared to 2015, by BGN 445.7 million (9.7%).

Indirect tax revenues amount to BGN 13,561.7 million, or 102.3% as compared to the annual plans. Compared to 2015, revenues in this group have grown by BGN 1,111.2 million (8.9%). The VAT proceeds amount to BGN 8,553.0 million, or 101.7% as compared to the plan. Compared to the previous year, VAT revenues have risen by BGN 813.0 million. The amount of the non-refunded VAT as of 31.12.2016 is BGN 106.5 million. There is also a growth in the excise duty revenues which amount to BGN 4,805.0 million (102.9% as compared to the annual plans), while as against 2015 they have grown by 6.2%, or BGN

280.0 million. Custom duties revenues are BGN 173.1 million, or 115.4% as compared to the annual plan.

Full Finance ministry release