BULGARIA’S tripartite coalition Cabinet marked its 100th day in office on November 23 by approving a programme for the country’s social and economic development.
The document, referred to as a Governance Programme, whose full text has not yet been made public, envisages the creation of 240 000 jobs to permanently reduce unemployment rate to below 10 per cent.
The minimum monthly wage will be raised once a year and its extent will serve as a state regulator on the labour market. The Cabinet also plans to set up an investment fund to offer support to the pension system.
The Government promises regular increase of wages related to the GDP growth.
Income tax rates will not be increased and the progressive taxation system will be preserved. A family taxation system will be introduced in full by the end of 2007. Corporate tax rates will not be changed.
Prime Minister Sergei Stanishev said the programme was designed to be changed regularly and to reflect proposals made by businesses and public organisations. In his view, the document only lays the foundations for future planning of the country’s path towards economic and social reforms.
Stanishev first presented this social and economic development programme on November 18.
“We tried to unite the priorities of each ministry with the overall political, economic and social commitments of the ruling coalition,” Stanishev said, speaking at a discussion of the draft held on the initiative of the Economic and Social Council, which is a consultative body to the Cabinet.
Stanishev said that, as a citizen and a person, he would like to see more social priorities addressed even by the 2006 budget, but income policy and the rises of pensions and wages were not the only dimensions of social responsibility.
Parliament on November 17 approved the first reading of Budget 2006, which mainly emphasises social commitments and does a little to help businesses achieve higher economic growth next year. (Read more on Budget 2006 on page 8.)
“The budget is the product of responsible handling of the targets set for EU entry in 2007: having the required resources and administrative capacity, helping the Bulgarian economy prepare well for the competitive environment of the EU. To this end, through a reduction of the social security burden, the disposable income of business will increase by 600 million leva,” Stanishev said, urging the business community not to miss this opportunity to improve their competitiveness.
He expressed the conviction that an even more effective, programme-oriented budget would be prepared for 2007.
“The Government’s prime responsibility is to guarantee macroeconomic and financial stability and, as a result, to conduct an even more effective social policy,” he said.
Business executives and trade union leaders attending the discussion made more than 30 suggestions on the Governance Programme. They paid special attention to the large trade deficit and the need of export promotion.
Confederation of Independent Trade Unions in Bulgaria leader Zhelyazko Hristov described the programme as “a comprehensive and ambitious document” but “sparing in details about the way the planned actions will be carried out”.
Podkrepa Labour Confederation leader Konstantin Trenchev called for urgent adoption of revisions in healthcare legislation and introduction of an information system in the sector. His view is that this is one of the sectors with the deepest problems in this country.
The document lacked concrete figures, which was important in order to compare what had been promised and what would be achieved, Bulgarian Industrial Association chairman Bozhidar Danev said. He said he had not found in the programme any clear definition of the future tax and budget policies that would lead to the envisaged social and economic growth.
