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2024 budget is passed
The 2024 budget forecasts 3.2% GDP growth next year (205.8 billion levs), a further fall in inflation to an avaerage 4.8% on an annual basis and an expectation of an 11% increase in labor costs. The financial framework for the year calls for a deficit of 5.8 billion levs on a cash basis, or 3% of GDP and 2.9% of GDP on an accrual basis. And this means another debt worth 8.4 billion levs to finance the planned deficit "and ensure the liquidity position of the fiscal reserve".
After days of debate in the plenary hall, the budget for 2024 was adopted on time unlike in previous years. But there was criticism of what were seen as overly optimistic financial forecasts.
Revenue cap on energy industry continues
A disagreement between the ruling majority, including within the WCC-DB coalition, marked the vote of the MP's to continue the anti-market measure of capping the income of electricity producers in 2024.
The measure was included in the budget by the finance ministry despite suspicions that it might cause a negative investment environment in the energy sector. It has been met with unprecedented and unanimous resistance from business organizations in the industry.
There were also strong criticisms from individual MPs, but in the end it was accepted thanks to sufficient votes from MP's in GERB, WCC, DPS and BSP. But members of DB and Vazrazhdane voted against or abstained.
New trains order fails to materialize
Out of the four big orders for new trains costing 3 billion levs, only half a train has been constructed to date. This can be deduced from documents in the Public Procurement Agency and the Commission for the Protection of Competition (CPC). It appears that we will have to wait several more years for the new trains to appear.
The largest tender of the Ministry of Transport has, sadly, been discontinued. These were for 20 single-deck zero-emission electric "push-pull" trains, which can travel up to 200 km/h, and have a 300-seat capacity. Neither of the two bids met the terms of the order which had an indicative value of 1.2 billion levs excluding VAT.
The team behind the daily news would like to wish you Happy Holidays!
