Municipalities owe more than BGN 800 million to construction companies for completed activities under the suspended OP “Environment 2007 – 2013,” announced caretaker Deputy Prime Minister in charge of Economic Policy, Minister of Regional Development and Minister of Investment Planning Ekaterina Zaharieva at a press conference after the regular government meeting with an emphasis on the state of the economy. She said that for BGN 304 million had been received over 200 requests that are currently processed and by the end of August have been verified BGN 89 million for 75 requests. Another BGN 500 million that local authorities owe is for completed by builders construction works that have not yet been invoiced.
Because of the stopped operational program the Ministry of Environment and Water (MEW) is indebted over BGN 1.1 billion to the national budget. There is a serious deficit in the 2014 budget, which will be formed not only by the EC suspended payments under OPE and OP “Regional Development” but also by the lack of finances in the departments, according to a report by the Finance Ministry. “The budget problems deepen and it is necessary to look for reserves. It will be extremely difficult to complete the update of the funds for NHIF which was adopted at the last second of the 42nd National Assembly. Because of it the departments should make cuts to the amount of 12%. Most of them before also had a shortage of money for the programs and contracts in public procurement that are unfunded. Many departments have already started cancelling procedures,” said Ekaterina Zaharieva.
According to Deputy PM, the Road Infrastructure Agency has signed contracts worth nearly BGN 66 million that are not secured. Funds for winter maintenance are not provided either and it requires BGN 12 million.
