Endmost measure to limit budget deficit could be raising VAT: Finance Ministe
Endmost measure to limit budget deficit could be raising VAT: Finance Ministe
According to the Finance Minister Plamen Oresharski the endmost measure, which could be used in order to limit the deficit of the running account, will be to raise the percent of the Value Added Tax (VAT).
Oresharski made a review of the fulfillment of budget 2005 in front of journalists on Wednesday.
The prognosis for next year is that the deficit of the running account is to remain high, about 12% from the GDP.
“The Cabinet disposes of very few instrument to influence the deficit, because it is generated mainly by the private sector,” Oresharski said.
According to the minister the alteration of this tax upon consummation is practically the only opportunity for the government to control the deficit.
The Parliament is scheduled to work out two new laws next year, one regarding the VAT and another regarding the corporative income tax.
Oresharski added that he doesn’t expect risks with the start of the National Income Agency, scheduled to begin functioning from 2006.
“Its start was postponed with 5 years and we had to finally set a date for a real start,” the Finance Minister commented.
He added that the capital expenses are scheduled to reach 12.7% with the aim to stimulate the economic growth.
More: bgnewsnet.com