October 26 (SeeNews) - Bulgaria's finance ministry on Wednesday proposed to parliament to adopt the government budget for 2017 which envisages a deficit equivalent to 1.4% of the projected gross domestic product (GDP).
Budget revenues are forecast at 21.9 billion levs, while budget expenditures are planned at 22.8 billion levs, the ministry said in a statement.
The fresh borrowing which the government will be allowed to make in 2017 cannot exceed 1.2 billion levs, the finance ministry said. State debt must not exceed 23.9 billion levs at end-2017, it added.
Gross Domestic Product (GDP) is projected to grow by a real 2.5% to 92.4 billion levs next year, slowing down from a 2.6% increase forecast for 2016.
The projected average annual deflation of 1.1% in 2016 is expected to turn to inflation of 1.5% in 2017 on the back of a forecast of higher oil prices and non-energy raw materials, as well as rising domestic demand.
(1 euro = 1.95583 levs)