(MENAFN) Bulgaria plans to lift the fiscal deficit this year to 2 percent of gross domestic product from current 1.4 percent, mainly due to an expected drop in revenue and increased spending, Reuters reported.
Finance Minister Petar Chobanov said weaker than initially expected economic growth would lower revenues by about USD656.08 million, compared to an estimated USD326.84 million more it was planned in 2013.
Bulgaria is expected to grow by about 1 percent this year, after expanding by 0.8 percent in 2012. It had a budget deficit of 0.5 percent last year.
The political instability in the country, where street protests that seek to oust the Socialist-led cabinet broke out just two weeks after it took office, are increasing the risks for the fledgling economy.
The budget registered a small surplus in the first five months of the year, but Chobanov said the previous centre-right GERB government has drafted the 2013 budget on overly optimistic growth forecast.
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