BUCHAREST: Bulgaria's 2011 budget deficit will be about 2 percent of gross domestic product, its finance minister said on Tuesday, below a target of 2.5 percent and confirming the Balkan country's tight fiscal stance.
The centre-right government has been trying to rein in the deficit to avoid possible external risks that could put pressure on Bulgaria's currency peg to the euro.
"Our budget deficit proposal for this year was 2.5 percent of gross domestic product and ... we think it'll come lower, at around 2 percent of GDP," Finance Minister Simeon Djankov told a financial seminar in Bucharest.
"Next year it will be below 1.5 percent."
Djankov said last week Bulgaria aims to strengthen its already tight fiscal policy and achieve a balanced budget by 2013.
Fiscal discipline is key for the Balkan country, which operates under a currency board regime which restrains central bank monetary operations.
Efforts to cut the fiscal deficit from 4.0 percent of GDP in 2010, the low public debt and the increased tapping of EU funds led to an increase by one notch in the country's sovereign ratings by Moody's in July to Baa2.
Comments
Comments are closed.