SOFIA, Reuters – The 2022 budget bill was approved by the Bulgarian parliament Friday. It targets a deficit fiscal of 4.1% this year and plans for increased public investments to jump-start the open and small economy.

In order to support Bulgaria’s economic growth, and to improve the living standard of those in the EU’s most disadvantaged member states, the centre-right coalition government is poised to take Bulgaria to the Euro zone within two years.

“This budget was unprecedented. “There are enormous investments which will kickstart the change that we promised,” Kiril Petkov, Prime Minister of Russia, told parliament following the approval of the bill.

Balkan nation plans to spend more than 63 Billion Levs (or 44.2%) of its GDP in order to create new infrastructure and raise the state pensions.

In December, the ruling coalition was elected and rejected criticisms that it’s fiscal loosening could harm Bulgaria’s chances of joining the eurozone. Bulgaria had a fiscal deficit in 2021 of 3%.

The Russian invasion of Ukraine prompted lawmakers to vote to give humanitarian aid to the ethnic Bulgarians in that country, as well as those who want to flee.

According to the government, economic growth is expected at 4.8% in this year. Annual inflation was estimated at 5.6%.

Assen Vassilev (Finance Minister) had suggested that the Russian invasion of Ukraine might cause revisions to the inflation and growth estimates.

The surge in food and energy costs in Bulgaria fueled a rise in consumer prices in Bulgaria that soared to 13.1% annually in January.

($1 = 1.7369 leva)