Bulgarian Interim Ministry of Finance predicts increased budget deficit in 2022
SOFIA, Dec. 10 (Reuters) – Bulgaria’s interim finance ministry expects the country’s budget deficit to reach 5.1% of economic output next year due to the funding needed to tackle the pandemic of coronavirus, according to the 2022 budget proposal released on Friday evening. .
The draft is designed as a general framework for Bulgaria’s budget plans and is likely to be overhauled by a regular coalition government which is expected to be approved by parliament next week.
The centrist PP, which struck a deal for a new government earlier on Friday, said it wanted to prepare its own budget plans and said it would likely target a budget deficit of around 4% of GDP next year. .
Bulgaria is expected to end this year with a budget deficit of 3% of GDP, according to the 2022 draft budget.
The country will need to raise 10.2 billion levs ($ 5.90 billion) in new debt next year to finance the budget deficit and roll over maturing bonds, raising its debt-to-GDP ratio to 27 percent of by the end of 2022, compared to 24% at the end of 2021.
The project predicts that inflation, boosted by high energy prices, will climb to 6% at the end of this year before falling back to 2.5% at the end of next year.
Bulgaria’s interim finance ministry also forecast that economic growth will accelerate to 4.6% next year, from a downward revised growth of 3.7% in 2021. ($ 1 = 1.7301 levs ) (Report by Tsvetelia Tsolova edited by Paul Simao)