site.btaGovernment to Unveil Anti-Inflationary Package on Monday

Deputy Prime Minister and Finance Minister Assen Vassilev told the Bulgarian National Radio on Sunday that the government would unveil an anti-inflationary package on Monday. It is expected to help the public cope with the price increase, which is most tangible for food and building materials.

Inflation in Bulgaria has peaked out ahead of the eurozone because staple foods and fuels account for a much larger share of the consumer basket used in measuring inflation, said Vassilev. "We are poorer and we pay more for food and energy," he commented.

He added that production and export had grown substantially in the first quarter of 2022, which was not due to the military-industrial complex alone. Meanwhile, the hospitality industry saw a decrease by about 1%.

The government will continue paying compensations to businesses for the electricity price surge until changes are agreed with employers, the Energy Ministry and the Parliamentary Energy Committee, said Vassilev.

The excise duty on electricity used by many types of production operations and by public transport will be scrapped, as will excise duty on CNG fuel. "We will tap every opportunity for zero excise duty provided by the EU directive," he said.

"Since electricity is generated in Bulgaria, the state-owned companies' excess profits can be paid to businesses in the form of compensations. The government can cushion the shock, but given that the oil price has doubled, we cannot keep petrol and diesel prices at their earlier levels because they are sourced from abroad," said Vassilev.