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Finance Minister: 15 per cent of Bulgarian public sector to be axed

Mon, Oct 05 2009 11:34 CET 1585 Views 6 Comments
Finance Minister: 15 per cent of Bulgarian public sector to be axed

Simeon Dyankov, Finance Minister and Deputy Prime Minister.

Photo: Tsvetelina Angelova

A report sent by Bulgaria's Deputy Prime and Financial Minister Simeon Dyankov to other Cabinet ministers and the chief of Government agencies, including the State Agency for National Security (SANS), as well as the National Statistics Institute (NSI) is instructing them to formulate a strategy whereby they will be prepared to shed as much as 15 per cent of their staff, the Bulgarian News Agency reported on October 5 2009.

The scheme has earmarked entire units with duplicating activities to be shed, while certain other agencies and operations will cease to be financed by the state budget. In all, the Financial Ministry plan has designated around 13 050 out of a total 87 000 people employed in administration to be sacked, Trud daily has said.

Dyankov envisages the complete closure of those entire state-run agencies described as having "identical functions" with other state agencies, but that those who remain in their position will be given higher wages if they can "improve the efficiency of their institution", although the original report from Trud daily has failed to disclose any concrete criteria or details surrounding the scheme.

The government institutions reportedly have been given until November 1 2009 to come up with the trimming plan which is set to be put in motion, ensuring that more than 13 000 people are likely to lose their jobs by Christmas.

The new GERB government has initiated the drastic measures in order to reduce government spending as part of its its effort to tackle the spiraling budget deficit, a legacy blamed on the former government's "lavish spending spree".

The measures are similar to ones undertaken by the Romanian government which announced on September 8 2009 that more than 8500 public servants will be made redundant, as part of a restructuring scheme that aims to trim government agencies and make them more cost efficient as well as productive.

As a direct consequence of the purge, more than half the government agencies are to be terminated altogether while others will be restructured. The administrative shake-up is expected to save as much as one billion euro in the process.

Accordingly, out of the 224 government departments, agencies and other associations, directly or indirectly controlled and subjected to the central government, only 107 will remain in operation. This would mean that 8545 public servants will find themselves looking for a job.

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Comments

Anonymous Todorova Mon, Oct 26 2009 04:14 CET

It is so unfortunate that I actually voted for this party on the last elections. I regret the fact that Minister Dyankov has proven his intelectual capabilities in the field of public finance in such a inrrefutably damaging for the Bulgarian economic health manner. Slashing the public budget by 15%, closing 100 hospitals, cutting 10% of the health ministry budget. The result - strong economic shock, long-term disbalance the economic equilibrium, higher unemployment, higher taxes on a local level etc. etc.
Once again, I feel ashamed to be bulgarian in a time like this. And Mr. Dyankov should [...]

Read the full comment be too.
In times of shaken world economy, instability of the work force, lower production levels and on top world health pandemic....Mr. Dyankov brainstorming results are going to produce a reduced government spenditure. At what cost, Mr. Dyankov? At what cost? And is any of this going to result in freeing up capital to the free sector...not at all...because the investment rate is low and consumers consumption rate will be low -when you are unemployed, you don't spend a lot. So the only source for your GDP will be the net export...well I hope the increased Contraband of cubin cigarettes help..but I doubt it, because they do not like to pay duty fees.
Mr. Dyankov, I honestly cannot express my regret for voting for you.

Anonymous Valeri Tue, Oct 06 2009 20:30 CET

Raptor,
BG has one of the worse bureaucracy, but as I've said here, humans do act from habit.

This is the reason I am so high on the EU with all of their bureaucracy in turn - sometimes an external pressure is the only help against one's habitual inertia.

Anonymous Raptor Tue, Oct 06 2009 08:48 CET

About friggin time - once I visited a local administrative office just to get a document stamped. It went something like this.

In the office was sitting four people at four separate desk. So, first stamp, then next desk for another and so on!! Each time paying a fee.

After this event, had to produced the document (x 4 stamps) at another office after waiting 40 + minutes in a line. The clerk then asked me to pay 5 c in order to pay for the receipt for the 5 c so [...]

Read the full comment I could receive my final stamp!!





Anonymous Milen Tue, Oct 06 2009 06:41 CET

Good idea as less taxpayer money will be spent on useless bureaucracy.
However, it won't help the unemployment problem...

Anonymous Valeri Mon, Oct 05 2009 23:39 CET

I've waited 20 years for that....

Anonymous Ilian Mon, Oct 05 2009 21:13 CET

Excellent work!


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