Djankov promises to allocate bonuses under Budget 2013 for debt-free municipalities for the construction of roads and tourist infrastructure

The newly-drafted Budget 2013 will "award" the best-performing municipalities with bonuses, stated Finance Minister Simeon Djankov in the town of Silistra, cited by Darik radio. The municipalities in stable financial condition, which showed long-term positive results, will receive additional funds from the state The Treasury will allot money mainly for the construction of roads and tourist infrastructure. The funds will not be utilised for additional remuneration of employees in the municipality, emphasised the Finance Minister. According to the latest data from the end of last year, among the best-performing municipalities are those of Bourgas, Blagoevgrad, Varna, Plovdiv, Haskovo, as well as the Sofia Municipality.

For inefficient municipalities, a blocking mechanism has been provided which will prevent them from applying for additional funds from the state budget for capital expenditures, added Djankov. The exact financial analysis will be presented by the end of the month.

Let us remind our readers that the audit of the National Audit Office of the Republic of Bulgaria showed, earlier this year, that 82 municipalities face an increased risk for servicing their debts until 2013. The established difference in the ratio of payments on municipal debt and their income is greater than 30% . For 2010, these municipalities were 44, while for 2011, they were 47 and, for 2012, they were 15. The audit showed that 24 municipal loans remain unabsorbed, while 24 municipalities have failed to introduce in the Central Register of Municipalities' Debt the timely information on the serviced loans, while 192 municipalities disburse their loans on time, whereas 22 delay the payment on their loan instalments.

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