Publication: Bulgaria : Public Expenditures for Growth and Competitiveness
Date
2012-03
ISSN
Published
2012-03
Author(s)
World Bank
Abstract
Bulgaria's economy performed
relatively well during the crisis and the economy is
reviving. In comparison with other Tenth European Union
(EU10) countries, for Bulgaria the drop in Gross Domestic
Product, or GDP growth was below the median, fiscal
performance deteriorated less, and public debt stayed among
the lowest in the entire EU. In late January 2011 the EC
concluded that in 2010 Bulgaria had made significant
progress in deficit reduction and is on track to exit the
excessive deficit procedure in 2011. The large macroeconomic
imbalances observed in 2005-08 had been corrected by 2010
with relatively little negative impact on growth relative to
other EU10 countries. Since late 2010 Bulgaria's
recovery has been driven by net exports; investment and
consumption are recovering more slowly. As long as the
economic environment remains favorable and structural
reforms are implemented as planned, the economy should reach
and even exceed its pre-crisis level in 2012. This report is
intended to inform policy makers, the international
community, and civil society about Bulgaria's recent
economic performance and its options for reforming public
spending to enhance competitiveness and growth. It first
reviews Bulgaria's growth strategy and its fiscal
adjustment over the last several years and the medium-term
challenges it confronts. The report then analyzes
Bulgaria's export performance to identify comparative
advantages and outline policy options to enhance
competitiveness in the medium term. Reforms should focus on
improving the productivity of the public sector to enhance
service delivery, improve the business environment, and
upgrade infrastructure. The report identifies two general
areas for reform: (i) the wage bill and public employment;
and (ii) management of public investment.
Citation
“World Bank. 2012. Bulgaria : Public Expenditures for Growth and Competitiveness. Public expenditure review (PER);. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/12451 License: CC BY 3.0 IGO.”