IMF Calls for Balanced Budget in 2004.

(From PARI Daily)

Byline: Viktoria LAZOVA and Valentina ILIEVA

Current account gap widens to 1.2% of GDP in January

THE INTERNATIONAL Monetary Fund (IMF) mission will demand a balanced budget this year, as a measure against the wide current account deficit, the finance ministry told the PARI daily. In January, Bulgaria's current account showed a deficit of 1.2% of GDP, or EUR 232.8 million in January, BNB balance of payments data show. A year earlier, the gap amounted to EUR 159.4 million, or 0.9% of GDP. Such a deficit in a month only is a reason for concern, experts commented for the PARI daily. The worsening of the current account, year on year, is mainly due to the aggravated trade balance.

The IMF mission is currently on a visit to Bulgaria to make an overall review of this country's economy and prepare a new agreement with the government. Deficit this year is planned to stand at 0.7% of GDP (BGN 284.2 million). The balanced budget measure was requested by the IMF last year, too, and the government covered the BGN 262.8 million gap projected with surplus budget revenues.

The likelihood for Bulgaria ...