Skip to main content
Article / Paper

Bulgarian Fiscal Policy in the Stabilization Program

State interference with real economy processes in developed market systems is primarily realized by respective fiscal and monetary policies. Changes in the fiscal policy are of paramount importance in the transition from a centrally-planned command economy to the market economy because of the large share of budget revenues and expenditures in the Gross Domestic Product (GDP). For Bulgaria this share amounts to 60-65 percent. On the other hand monetary policy effectiveness is greatly reduced by the underdevelopment of the banking system and by its excessive dependence on the executive.

These facts are not accidental. The philosophy of a centralized economy is best served by fiscal relations because they imply redistribution of resources from certain economic or consumer entities (industries, sectors) to others on the subjective will of the managing center.

This website uses cookies for functional and analytical purposes. By continuing to browse it, you consent to our use of cookies and the CSD Privacy Policy. To learn more about cookies, incl. how to disable them. View our Cookie Policy.