Bulgaria: Gov’t to Increase VAT to Reduce Current Account Deficit
Bulgaria: Gov’t to Increase VAT to Reduce Current Account Deficit
Bulgaria may increase the Value Added Tax in an effort to reduce the current account deficit, said the finance minister, Sofia news agency reports.
Bulgaria’s Finance Minister Plamen Oresharski presented the implementation of the 2005 budget and the key objectives of the 2006 fiscal policy.
The current account deficit is expected to reach 12% next year, which, according to the minister, may be worrying only in the long-term.
The IMF has repeatedly voiced concerns over Bulgaria’s surging current account deficit, the main culprit for which are said to be expenses outweighing revenues in the private sector.
Fiscal and macroeconomic stability and the creation of premises for stable economic growth will be the main aims of Bulgaria’s fiscal policy in 2006, Minister Oresharski explained.
Public expenses will not exceed 40% of the GDP.
More: reporter.gr