EU Finance Ministers Recommend More Effective Public Spending to Bulgaria

The Convergence Programme targets macroeconomic and fiscal policy and outlines the medium-term prospect for macroeconomic stability for the 2007-2009 period. The programme is an element of the process of multilateral fiscal monitoring by the EU institutions and the Member States. Filfillment of the programme is intended, ultimately, to meet the criteria for membership of the Economic and Monteary Union. Convergence programmes are prepared for the Member States which are not part of the Eurozone. The Programme targets implementation of the objectives of the Stability and Growth Pact.

„Health care systems are not sufficiently effectively geared to control, and the fact that in 2005 we found over 200 million leva arrears in the system testifies that in purely financial terms the system is not managed well,“ Oresharski said. „I would comment on the financial aspects when the Health Ministry specifies the guidelines of the reform and starts implementing them. We believe that our colleagues are finishing the preparation and will present to us an action plan for improvement of the effectiveness of spending,“ the Finance Minister added. He sees positive steps in 2006, considering that the arrears decreased, which is one of the criteria for better financial management of the system.

ECOFIN believes that the medium-term state of Bulgaria’s budget is stable and that the budget strategy is an example of fiscal policy consistent with the Stability and Growth Pact, Oresharski noted. The final conclusions note that Bulgaria must remain committed to its present fiscal policy and recommend an increase of the budget surplus for 2007 from 0.8 to at least 2 per cent, which is the fiscal objective in the National Budget Act, the Minister said. „We are considerably pleased by the Commission’s assessment,“ he added.

The Minister stressed the Government’s commitment to a prudent fiscal policy during the planning period.

BTA