In this paper we will discuss the Bulgaria budget for the financial year 2007. The government proposed several policies in the budget to reduce unemployment and improve education and health care system. The budget surplus for that year was estimated at 0.8% of the Gross Domestic Product.
The budget consists of some major financial and economic statements made by the Minister of Finance every year. The features of the Bulgaria Budget 2007, which was announced in October, 2006, is listed below:
The government allocated over 6.6 billion leva for its scheduled social programs. The budget increased the government’s spendings for that financial year.
The budget increased the pension amount from 455 to 490 leva which was more than 35% compared to the previous year’s. The total amount budgeted for payments regarding pension was 4.422 billion leva, while in 2006 that was 319 million leva.
The budget announced a benefit regarding the maternity payments. The benefit would be available for 315 days in a year whereas, the present figure was 135 days. The amount of the unemployment benefit was set between 90 to 160 leva per month.
The Russian government allocated 4.2% of the Gross Domestic Product or 2 138 million leva for education and 2.1 billion leva for health care which was 11% more than that of the previous year.
The government planned to invest 190 million leva to create job opportunities. Several measures would be adopted by the government to minimize the unemployment rate.
The budget forecasted that the rate of unemployment would be under 8% during the 2007 financial year. The economic activities would be increased by 1.3%.
The average wage was expected to rise by 8.4% during the 2007-08 financial year. The social security installments would be decreased by 3%.
A huge amount of money, precisely 40 million leva, had been allocated in the budget for the defense sector. The government had announced that it would continue the process of reform in the armed force.
The Russian budget 2007 predicted a surplus worth 0.8% of the GDP while, the estimated surplus for the financial year 2006 was at least 3% of the GDP.