In a bid to stimulate the economic environment in the midst of the current crisis, the Bulgarian Cabinet has earmarked 250 million leva towards economic rejuvenation. Although the money is supposed to be allocated to municipalities the proposal immediately caused feuding among them. Disagreements about the distribution of the 250 million leva - part of the public investment programme aimed at supporting the real estate sector - are becoming more entangled.

Disagreements have arisen because there is no coherent criteria or system to explain exactly how the funds will be dispersed and used among local communities.

"The Cabinet has come out with a statement, and a decision, which we, as a municipal organisation, upholders of transparency and objectivity, cannot understand. Why aren't all municipalities across Bulgaria supported by this scheme? Aren't all regions in the country hit by the crisis? Why do some regions receive bundles of cash, while others get only derisory amounts or no funds at all?" demanded executive director Ginka Chavdarova, from the National Association of the Municipalities of Bulgaria, in an official press statement, as quoted by Stroitelstvo Gradut.

The Cabinet has approved the budget credits attached to the programme for 2009  and the subsequent list of projects designated to be financed by the 250 million leva aid. In the report it stated that priority will be given to "the urgent repairs of playschools, schools, cultural monuments, the rehabilitation of water supply and sewerage installations, road sections in mountainous regions, local roads and street networks".

The programme was approved by Cabinet at the end of March. The concept is to help finance projects in small and medium-sized communities by providing resources to important projects, such as the modernisation of crèches, schools, community centres and ailing local infrastructure.

Of the 250 million, 155 million leva will be sent directly to municipalities to decide how to spend themselves. Among the municipalities with subsidised projects are Varna with 10 million leva designated for rejuvenation and modernisation of its road infrastructure, Silistra with seven million leva, also for road network infrastructure modernisation as well as another five million leva for sewerage and waste and water treatment plants in the Srebarna reservation.

Plovdiv has been given two million leva towards public works, the seaside town of Nessebar one million leva, Shoumen 750 000 leva and Blagoevgrad 500 000 leva, among others.