SOFIA (Bulgaria), June 7 (SeeNews) – The European Commission on Tuesday said Bulgaria should improve the predictability of its budgetary planning and its implementation, in particular by boosting fiscal governance.
Bulgaria should also proceed with effective budget implementation so as to correct the excessive deficit this year, the European Commission said in a Council opinion on the country’s updated convergence programme for 2011-2014.
“Specify the measures underpinning the budgetary strategy for 2012-2014 and take advantage of the ongoing economic recovery to speed up fiscal adjustment towards the medium-term budgetary objective, primarily by keeping expenditure growth in line with medium-term potential growth, while increasing the share of growth-enhancing public expenditure,” the European Union executive said.
Under the convergence programme, by 2014 Bulgaria's budget gap is expected to shrink to 0.5% of the projected gross domestic product (GDP) for that year.
Bulgaria's 2011 budget bill projects a shortfall of 1.9 billion levs ($1.42 billion/971.5 million euro), equivalent to 2.5% of the forecast gross domestic product, and economic growth of 3.6%.
Bulgaria also should speed up pension reform and strengthen measures to help older workers to stay longer in employment, the European Commission recommended.
The country also should ensure the full independence of the energy regulator; promote policies to ensure that wage growth better reflects developments in productivity and sustain competitiveness and take steps to address the challenge of combating poverty and promoting social inclusion.
The European Commisiion also recommended to Bulgaria to step up efforts to enhance administrative capacity in key government functions and regulatory authorities, and to introduce measures to check public procurement on the basis of risk assessments.