site.btaDeficit Could Reach 8% if Government Does Not Fall, Says CC Chair Assen Vassilev

Continue the Change leader Assen Vassilev told journalists on Wednesday that the budget deficit could reach 8% if the government does not fall. His statement was in response to GERB leader Boyko Borissov describing Thursday’s motion of no confidence in the government as irresponsible because of the preparation of the new budget and the adoption of the euro.

By the end of July, GERB's financial policy had led to a record deficit of over BGN 4 billion, said Vassilev. “By comparison, when I was minister, there was no deficit one year, and no deficit the next year,” he pointed out and argued that a deficit of BGN 4 billion, which is 2%, means that it will be very difficult, even impossible, for the budget to fit within the 3% framework. Vassilev explained that the national debt currently stands at over BGN 18 billion. “We have BGN 6 billion for all pensions and salaries, BGN 3 billion for old debts, BGN 9 billion has been withdrawn by this government and put into the Bulgarian Development Bank, the Bulgarian Energy Holding and all kinds of other coffers, so it is impossible to tie them to a financial policy,” he added.

“What we are seeing at the moment with  Vazovski Mashinostroitelni Zavodi [Vazov Machine-Building Plants] is that there is a desire to invest with European funds, as far as I know, and from there on, it is a matter of the Bulgarian state managing this investment in the best and most profitable way for the state,” commented Vassilev in response to a journalist's question about the plant.