The head of the International Monetary Fund (IMF) mission to Bulgaria Hans Flickenschield arrived in the country for a last evaluation of Budget 2006 before its appoval by Parliament. The mission was not arriving with good news, Flickenschield said. The IMF continues to demand that national expenditure should not exceed 40 per cent of the GDP. In addition, all surplus income needs to be saved, according to the recommendations. Experts predict the surplus for next year will reach at least one billion leva, Standart newspaper reported.
Flickenschield said that the current account deficit is much higher than expected. The fund revised its prognosis and its prediction for the GDP deficit in 2005 is 13.8 per cent. Education and health were two spheres that needed to be reformed before extra funds were allocated for salary increases, Flickenschield said. IMF representatives will once again discuss the budget surplus with Bulgarian economists, but a final decision would not be taken until the next IMF mission in January, Finance Minister Plamen Oresharski said.