Journal of Economic Boundaries and Transformation , 2024
Sustainable finance has been the focus of policies in European countries, regions, and municipali... more Sustainable finance has been the focus of policies in European countries, regions, and municipalities over the past few years. The Green Deal and the targets set in the EU's Multiannual Financial Framework aim to channel capital flows towards financing various investments that meet climate targets covering all key sectors of the economy. Local authorities are among the primary implementers of green investments. They have access to a variety of European and international programs that support project implementation. The purpose of this study is to explore funding opportunities for municipal projects aimed at increasing energy efficiency. The study focuses on the potential for financing sustainable projects through green bonds and the establishment of energy cooperatives. Both instruments are gaining popularity for project financing among European countries, and the taxonomy and dynamics of green bonds warrant particular attention. The research includes a SWOT analysis for implementing green bonds in Bulgarian municipalities, as well as SWOT and PESTEL analyses of the opportunities for establishing energy cooperatives. Additionally, a survey has been conducted to gather the opinions of Bulgarian municipalities on the topic. The results indicate that both instruments offer significant benefits for financing energy efficiency projects, and their future application could expand the sources of funding for both Bulgarian and European municipalities.
In recent years, local authorities in Bulgaria and the European Union member states have faced nu... more In recent years, local authorities in Bulgaria and the European Union member states have faced numerous challenges. The crisis related to the spread of COVID-19, the war conflict in Ukraine, high inflation rates, increased energy prices, and disrupted supply chains have significantly negatively impacted municipal budgets. The growth of local expenditures not only outpaces revenue growth but does so at significantly higher rates. The low elasticity of tax revenues prevents them from increasing in parallel with the expenditures. The inflation recorded in recent months further creates fiscal gaps at the municipal budget level. There are increasingly significant discrepancies between the revenue and expenditure sides of budgets, and some municipalities are exacerbating the problem of underfunded expenditures. Practitioners and academic experts are exploring ways to increase local government revenues and enhance the tax autonomy of municipalities in Bulgaria. Revenues from property taxes play a crucial role in increasing the tax independence and own-source revenues of local governments. The aim of this study is to analyze and assess the possibility of updating the tax assessment of real estate as a key prerequisite for the growth of local tax revenues.
Annual of Sofia University “St. Kliment Ohridski”, Faculty of Economics and Business Administration , 2024
The issue of the sustainability of public finances is of interest to both academics and politicia... more The issue of the sustainability of public finances is of interest to both academics and politicians. The topic becomes even more relevant in times of financial difficulties. The purpose of this article is to present the legal framework and fiscal rules for maintaining the sustainability of public finances in Bulgaria and in the European Union. Particular attention is paid to the European Semester. A financial analysis of the public finances of Bulgaria for the period 2017 – 2021 is presented. An analysis of compliance with the financial rules set out in the Public Finance Act is presented. The main challenges and perspectives are outlined.
Шеста международна конференция по публична администраци, СУ "Св. Климент Охридски", 2022, 2022
Устойчивостта на публичните финанси е поставена на изпитание през последните няколко години. Първ... more Устойчивостта на публичните финанси е поставена на изпитание през последните няколко години. Първият сериозен удар е нанесен от пандемията COVID-19, а настоящата криза се свързва с бързо ускорение на инфлацията, енергийна криза и рискове от влошаване на основните макроикономически показатели. Целта на настоящата разработка е да направи текуща оценка на публичните финанси, в т.ч. динамика на бюджетните приходи и разходи. Въз основа на получените резултати се представят възможности за финансиране на нарастващите държавни разходи. Анализирани са варианти за преструктуриране на разходите в рамките на одобрения бюджет и за необходимост от ползване на дългово финансиране.
Пета международна конференция по публична администрация, "Публично управление след 2020: какво знаем, когато нищо не знаем", СУ "Св. Климент Охридски", 21-22 октомври 2021 г., 2021
Пандемията от COVID-19 наложи централната власт да въвежда безпрецедентни мерки с цел запазазване... more Пандемията от COVID-19 наложи централната власт да въвежда безпрецедентни мерки с цел запазазване здравето и благосъстоянието на населението и подкрепа за икономиката. Настоящият доклад е посветен на анализ и оценка на икономическите мерки, приложени от държавите-членки на Европейския съюз, резултатите до които водят те по отношение на икономически растеж и стъпките за преодоляване на бъдещи негативни последици. Направено е сравнение на възприетите мерки в България и в останалите държави-членки. На база данни за икономическия растеж се проследява възстановяването на националните икономики. Внимание се отделя и на Плана за възстановяване на Европа и пътната карта за нови източници на приходи.
37th International Public Finance Conference/TR Proceedings Book, 2023
Over the recent years, public finances have been affected as multiple crises, including health cr... more Over the recent years, public finances have been affected as multiple crises, including health crisis - regarding the COVID-19 pandemic, energy crisis, inflation crisis as well as political crisis. Local authorities which provide the essential public services and goods to the citizens face significant challenges. The purpose of the report is to present the planning of municipal budgets in Bulgaria in times of crisis. The research provides suggestions for refining budget planning in the context of the targeted crisis. The results of the implementation of the municipal budgets for the period 2015-2020 are presented, with an overview of the degree of implementation of the revenue and expenditure part. The main problems faced by the municipalities in Bulgaria in terms of planning in the absence of an adopted state budget for 2022 and 2023 are outlined. In order to review and evaluate the three-year budget forecast of the municipalities, the forecasts of two municipalities - medium and large - were analyzed. The main task is to present and summarize recommendations, on the basis of which the municipalities will plan the budgets more precisely, create a sustainable capital program and to be able to build the budget buffers to fight the coming crises.
The topic dedicated to local revenue growth in Bulgaria has been relevant since the start of the ... more The topic dedicated to local revenue growth in Bulgaria has been relevant since the start of the decentralization process. Nearly twenty years after the democratic changes, local authorities are experiencing severe funding shortages and difficulties in implementing their capital programs. The topic is becoming more relevant due to the COVID-19 pandemic and the current economic situation-rising inflation and problems related to the revenue collection. The purpose of this article is to present a retrospective analysis of the dynamics of the local revenue in Bulgaria and to calculate key financial indicators. The results are compared with the European Union average. The study presents the main results of the Program for fiscal decentralization in Bulgaria. Based on the analysis of the European practice, local revenue structure in Bulgaria and main fiscal indicators, the possibilities for local revenue growth are presented.
The perspective of global climate change emerges as a significant political, economic, financial ... more The perspective of global climate change emerges as a significant political, economic, financial and social issue. Scientific researches show that the accumulated carbon dioxide (CO2), released by the industry and agriculture, together with the contribution of man-made greenhouse gases leads to a rise in the temperature of the earth's surface. Traditional sources of financing capital expenditure, such as own revenues and bank financing have proved to be extremely insufficient. At the same time, not only traditional municipal needs, such as costs for street, road, bridge, school construction etc., but also the need of investments related to climate change have been on the rise. The purpose of this article is to examine and analyze alternatives for financing climate change-related municipal investments. The subject of the research is green bonds and the so-called Subnational Pooled Financing Mechanisms, which have already gained popularity in Western Europe but are not yet well kn...
Резюме В европейските държави се наблюдават значителен брой териториални промени на ниво община п... more Резюме В европейските държави се наблюдават значителен брой териториални промени на ниво община през последните години. Изменения се отчитат както по отношение на сливане на местни териториални единици, така и по отношение на създаване на нови общини чрез разделяне. Целта в настоящата статия е да се изследват териториалните промени, които се наблюдават при общините в България и при част от европейските държави. Основна задача е да се анализират реформите, причините, които се крият зад тях и резултатите, до които водят.
България е унитарна държава с 28 области и 265 общини. Темата за териториалните реформи в страна ... more България е унитарна държава с 28 области и 265 общини. Темата за териториалните реформи в страна периодично се поставя в дневния ред на публичните обсъждания. Целта на статията е да изследва миналото на териториалните промени на ниво община в България, да оцени настоящите нагласи и да представи потенциални възможности за бъдещи териториални реформи. На база проведено кабинетно проучване са анализирани факторите довели до промяна на броя на общините в България. Направен е финансов анализ на новосъздадените общини. Въз основа на получените резултати и на база изследвана европейска практика е направено допускане за възможности за бъдещи териториални промени.
Public investments are an essential precondition for ensuring the appropriate structural environm... more Public investments are an essential precondition for ensuring the appropriate structural environment in which the economy of a region works. Public investments are made in order to address horizontal issues in the areas of education, training, healthcare, infrastructure and in other areas. The main purpose of this report is to find the link between public investments and economic development in the EU countries. We use the indicator ”Gross capital formation in the General Government Sector” in order to measure the level of public investments. Investments made at the local level, at the central level, by the state, and by the social security funds, are within the scope of the indicator. By establishing distinct cluster groups, a cluster analysis is made as a basis for tracking the relationship between share of public investments in the GDP and in the GDP/per capita. Summarizing the results of conducted analyses we reach the conclusion that countries of Central and Eastern Europe stan...
Public investments are a crucial factor for the achievement of economic growth, increase of natio... more Public investments are a crucial factor for the achievement of economic growth, increase of national, regional and local competitiveness and improvement of the quality of life of local population. In recent years, as the processes of decentralization intensify, local governments were entrusted with increasingly greater responsibilities associated with the construction and maintenance of public infrastructure. The main goal of this paper is to assess the investment capacity of Bulgarian municipalities for the period 2003-2014. Basic research methods used in this paper: historical and logical analysis, analysis and synthesis, comparative analysis.
The activities regarding further improvement of the degree of fiscal decentralization in Bulgaria... more The activities regarding further improvement of the degree of fiscal decentralization in Bulgaria started in 2003. As a result of initiated reforms, Bulgarian municipalities gradually improved their abilities to generate revenue, obtained new responsibilities regarding expenditures, including these for construction, maintenance and expansion of local public infrastructure, and gradually improve their access to debt markets. This paper presents an examination of the development of debt financing of municipalities in Bulgaria. The aim is to reveal how decentralization opened up opportunities to finance municipal investments through debt, as well as to determine the character of debt financing as regards the increased municipal investment capacity. The period of research is 2003- 2015 because this period ensures more accurate results. The object of analysis is debt financing while the research topic is the changes in the municipal domestic debt in Bulgaria. The main information base in...
The study of the reform of territorial and administrative division in Bulgaria has attracted the ... more The study of the reform of territorial and administrative division in Bulgaria has attracted the attention of both researchers and policy-makers. A review of European academic journals has yielded numerous studies on amalgamation reforms and their consequences, albeit mainly in Western Europe (Wollmann, 2008; Boedeltje, 2010; Hlepas, 2010; Vrangbæk, 2010; Copus et al, 2017; Swianiewicz, 2018; Tavares, 2018; Garlatti et al, 2020). We have identified only a handful of papers dedicated to municipal splits. This trend can be attributed to two factors. Municipal splits are rarely the result of a targeted government policy. They rather result from bottom-up pressure from local political elites and communities. Therefore, scholars interested in the impact analysis of government policies concentrate on merger reforms rather than municipal divorces (Swianiewicz, 2020: 28). The second potential contributing factor is geographical location. We have observed that the counties in Western Europe generate greater scientific interest compared to their counterparts in South-East Europe. However, lately there has been stronger interest in municipal secession and more studies devoted to territorial reform in Romania, Slovenia and Hungary can be found (Swianiewicz, 2019; Stanuş, 2020; Dobos, 2021; Brajnic and Lavtar, 2021; Swianiewicz, 2021).
The crisis brought on by the COVID-19 pandemic has strained the capacity of central governments a... more The crisis brought on by the COVID-19 pandemic has strained the capacity of central governments and their healthcare systems but has also had an impact on the financial situation of local territorial units. Insofar as local authorities play an essential role in the enforcement of the lockdowns put in place to curb the pandemic, municipal spending has increased and the funds necessary to keep the measures in place have put an additional burden on municipal budgets, jeopardising essential public service delivery. This paper traces the changes in revenue and spending at local level in Bulgaria triggered by COVID-19 by looking at the level to which the crisis brought on by the pandemic has jeopardised the financial health of municipalities and contributed to an increase in the number of municipalities experiencing financial difficulties. In connection with this, the procedure for financial recovery of municipalities in Bulgaria and its effectiveness have been examined by looking at whether in the period 2016-2020 the number of municipalities experiencing financial difficulties has increased or decreased. The analysis covers the key factors that may lead to an increase in the number of municipalities with financial difficulties, including decreasing local tax collection rates, increasing municipal debt and arrears, etc. The capital activity of local authorities has also been explored. Measures for improving the local governments' financial conditions and mitigating the negative effects of the crisis triggered by the pandemic have been proposed.
Journal of Comparative Policy Analysis: Research and Practice
The concept of the political cycle was formulated in relation to the decision making of governmen... more The concept of the political cycle was formulated in relation to the decision making of governments and parliaments at the national level, but it has also been used as a framework for studying local financial decision making. Most of the earlier empirical studies focused on public expenditures, but later studies also investigated local tax policies. This article argues that, in Central and Eastern Europe (where the concept of political cycle has been applied very early so far), the meaning of typical local taxes is relatively limited, and levies financing local services may be a more likely policy area to demonstrate the existence of the political budget cycle. This case study is related to tariffs for water provision in Poland and solid waste collection in Bulgaria. In spite of official terminology, the legal definition and practice of both duties do not meet all criteria of the rigid definition of user charges for services. Due to their actual nature, the term “earmarked taxes” is used in the title, while the terms tariffs and earmarked taxes are used interchangeably in the text. The existence of the political cycle is tested through panel logistic and linear regression models. According to the legal regulations in both countries, tariffs for both services should be calculated in a technocratic way based on actual costs, however the article demonstrates that the impact of the electoral cycle on actual decisions on the level of levies still exists.
Резюме Кризата, свързана с разпространението на COVID-19 поставя на изпитание прякото доставяне н... more Резюме Кризата, свързана с разпространението на COVID-19 поставя на изпитание прякото доставяне на административни услуги от страна на централната и местната власт. Струпването на големи групи хора и необходимостта на социална дистанция изисква прилагането на по-различен подход при предоставянето на публичните блага и услуги. Настоящият доклад има за цел да представи развитието на е-услугите, които се предоставят от публичната администрация в България и тяхното развитие в резултат на кризата, свързана с разпространението на вируса. В настоящия доклад е представена степента на изпълнение на реформата към електронно управление, новите възможности за отдалечен достъп до публични услуги, които се предлагат на местното население в България. Представени са възможноститe за финансиране на реформата и основните проблеми, свързани с въвеждането на е-услугите и е-управлението. Abstract The crisis surrounding the proliferation of Covid-19 is putting to a test the direct delivery of administrative services by central and local government. The need for social distance requires a different approach to the provision of public goods and services. This report aims to present the development of e-services provided by the public administration in Bulgaria and their development as a result of the crisis related to the spread of the virus. The report presents the degree of implementation of the reform of e-government, the new opportunities for remote access to public services that are offered to the local population in Bulgaria. The possibilities for financing the reform and the main problems related to the introduction of e-services and e-government are presented.
Journal of Economic Boundaries and Transformation , 2024
Sustainable finance has been the focus of policies in European countries, regions, and municipali... more Sustainable finance has been the focus of policies in European countries, regions, and municipalities over the past few years. The Green Deal and the targets set in the EU's Multiannual Financial Framework aim to channel capital flows towards financing various investments that meet climate targets covering all key sectors of the economy. Local authorities are among the primary implementers of green investments. They have access to a variety of European and international programs that support project implementation. The purpose of this study is to explore funding opportunities for municipal projects aimed at increasing energy efficiency. The study focuses on the potential for financing sustainable projects through green bonds and the establishment of energy cooperatives. Both instruments are gaining popularity for project financing among European countries, and the taxonomy and dynamics of green bonds warrant particular attention. The research includes a SWOT analysis for implementing green bonds in Bulgarian municipalities, as well as SWOT and PESTEL analyses of the opportunities for establishing energy cooperatives. Additionally, a survey has been conducted to gather the opinions of Bulgarian municipalities on the topic. The results indicate that both instruments offer significant benefits for financing energy efficiency projects, and their future application could expand the sources of funding for both Bulgarian and European municipalities.
In recent years, local authorities in Bulgaria and the European Union member states have faced nu... more In recent years, local authorities in Bulgaria and the European Union member states have faced numerous challenges. The crisis related to the spread of COVID-19, the war conflict in Ukraine, high inflation rates, increased energy prices, and disrupted supply chains have significantly negatively impacted municipal budgets. The growth of local expenditures not only outpaces revenue growth but does so at significantly higher rates. The low elasticity of tax revenues prevents them from increasing in parallel with the expenditures. The inflation recorded in recent months further creates fiscal gaps at the municipal budget level. There are increasingly significant discrepancies between the revenue and expenditure sides of budgets, and some municipalities are exacerbating the problem of underfunded expenditures. Practitioners and academic experts are exploring ways to increase local government revenues and enhance the tax autonomy of municipalities in Bulgaria. Revenues from property taxes play a crucial role in increasing the tax independence and own-source revenues of local governments. The aim of this study is to analyze and assess the possibility of updating the tax assessment of real estate as a key prerequisite for the growth of local tax revenues.
Annual of Sofia University “St. Kliment Ohridski”, Faculty of Economics and Business Administration , 2024
The issue of the sustainability of public finances is of interest to both academics and politicia... more The issue of the sustainability of public finances is of interest to both academics and politicians. The topic becomes even more relevant in times of financial difficulties. The purpose of this article is to present the legal framework and fiscal rules for maintaining the sustainability of public finances in Bulgaria and in the European Union. Particular attention is paid to the European Semester. A financial analysis of the public finances of Bulgaria for the period 2017 – 2021 is presented. An analysis of compliance with the financial rules set out in the Public Finance Act is presented. The main challenges and perspectives are outlined.
Шеста международна конференция по публична администраци, СУ "Св. Климент Охридски", 2022, 2022
Устойчивостта на публичните финанси е поставена на изпитание през последните няколко години. Първ... more Устойчивостта на публичните финанси е поставена на изпитание през последните няколко години. Първият сериозен удар е нанесен от пандемията COVID-19, а настоящата криза се свързва с бързо ускорение на инфлацията, енергийна криза и рискове от влошаване на основните макроикономически показатели. Целта на настоящата разработка е да направи текуща оценка на публичните финанси, в т.ч. динамика на бюджетните приходи и разходи. Въз основа на получените резултати се представят възможности за финансиране на нарастващите държавни разходи. Анализирани са варианти за преструктуриране на разходите в рамките на одобрения бюджет и за необходимост от ползване на дългово финансиране.
Пета международна конференция по публична администрация, "Публично управление след 2020: какво знаем, когато нищо не знаем", СУ "Св. Климент Охридски", 21-22 октомври 2021 г., 2021
Пандемията от COVID-19 наложи централната власт да въвежда безпрецедентни мерки с цел запазазване... more Пандемията от COVID-19 наложи централната власт да въвежда безпрецедентни мерки с цел запазазване здравето и благосъстоянието на населението и подкрепа за икономиката. Настоящият доклад е посветен на анализ и оценка на икономическите мерки, приложени от държавите-членки на Европейския съюз, резултатите до които водят те по отношение на икономически растеж и стъпките за преодоляване на бъдещи негативни последици. Направено е сравнение на възприетите мерки в България и в останалите държави-членки. На база данни за икономическия растеж се проследява възстановяването на националните икономики. Внимание се отделя и на Плана за възстановяване на Европа и пътната карта за нови източници на приходи.
37th International Public Finance Conference/TR Proceedings Book, 2023
Over the recent years, public finances have been affected as multiple crises, including health cr... more Over the recent years, public finances have been affected as multiple crises, including health crisis - regarding the COVID-19 pandemic, energy crisis, inflation crisis as well as political crisis. Local authorities which provide the essential public services and goods to the citizens face significant challenges. The purpose of the report is to present the planning of municipal budgets in Bulgaria in times of crisis. The research provides suggestions for refining budget planning in the context of the targeted crisis. The results of the implementation of the municipal budgets for the period 2015-2020 are presented, with an overview of the degree of implementation of the revenue and expenditure part. The main problems faced by the municipalities in Bulgaria in terms of planning in the absence of an adopted state budget for 2022 and 2023 are outlined. In order to review and evaluate the three-year budget forecast of the municipalities, the forecasts of two municipalities - medium and large - were analyzed. The main task is to present and summarize recommendations, on the basis of which the municipalities will plan the budgets more precisely, create a sustainable capital program and to be able to build the budget buffers to fight the coming crises.
The topic dedicated to local revenue growth in Bulgaria has been relevant since the start of the ... more The topic dedicated to local revenue growth in Bulgaria has been relevant since the start of the decentralization process. Nearly twenty years after the democratic changes, local authorities are experiencing severe funding shortages and difficulties in implementing their capital programs. The topic is becoming more relevant due to the COVID-19 pandemic and the current economic situation-rising inflation and problems related to the revenue collection. The purpose of this article is to present a retrospective analysis of the dynamics of the local revenue in Bulgaria and to calculate key financial indicators. The results are compared with the European Union average. The study presents the main results of the Program for fiscal decentralization in Bulgaria. Based on the analysis of the European practice, local revenue structure in Bulgaria and main fiscal indicators, the possibilities for local revenue growth are presented.
The perspective of global climate change emerges as a significant political, economic, financial ... more The perspective of global climate change emerges as a significant political, economic, financial and social issue. Scientific researches show that the accumulated carbon dioxide (CO2), released by the industry and agriculture, together with the contribution of man-made greenhouse gases leads to a rise in the temperature of the earth's surface. Traditional sources of financing capital expenditure, such as own revenues and bank financing have proved to be extremely insufficient. At the same time, not only traditional municipal needs, such as costs for street, road, bridge, school construction etc., but also the need of investments related to climate change have been on the rise. The purpose of this article is to examine and analyze alternatives for financing climate change-related municipal investments. The subject of the research is green bonds and the so-called Subnational Pooled Financing Mechanisms, which have already gained popularity in Western Europe but are not yet well kn...
Резюме В европейските държави се наблюдават значителен брой териториални промени на ниво община п... more Резюме В европейските държави се наблюдават значителен брой териториални промени на ниво община през последните години. Изменения се отчитат както по отношение на сливане на местни териториални единици, така и по отношение на създаване на нови общини чрез разделяне. Целта в настоящата статия е да се изследват териториалните промени, които се наблюдават при общините в България и при част от европейските държави. Основна задача е да се анализират реформите, причините, които се крият зад тях и резултатите, до които водят.
България е унитарна държава с 28 области и 265 общини. Темата за териториалните реформи в страна ... more България е унитарна държава с 28 области и 265 общини. Темата за териториалните реформи в страна периодично се поставя в дневния ред на публичните обсъждания. Целта на статията е да изследва миналото на териториалните промени на ниво община в България, да оцени настоящите нагласи и да представи потенциални възможности за бъдещи териториални реформи. На база проведено кабинетно проучване са анализирани факторите довели до промяна на броя на общините в България. Направен е финансов анализ на новосъздадените общини. Въз основа на получените резултати и на база изследвана европейска практика е направено допускане за възможности за бъдещи териториални промени.
Public investments are an essential precondition for ensuring the appropriate structural environm... more Public investments are an essential precondition for ensuring the appropriate structural environment in which the economy of a region works. Public investments are made in order to address horizontal issues in the areas of education, training, healthcare, infrastructure and in other areas. The main purpose of this report is to find the link between public investments and economic development in the EU countries. We use the indicator ”Gross capital formation in the General Government Sector” in order to measure the level of public investments. Investments made at the local level, at the central level, by the state, and by the social security funds, are within the scope of the indicator. By establishing distinct cluster groups, a cluster analysis is made as a basis for tracking the relationship between share of public investments in the GDP and in the GDP/per capita. Summarizing the results of conducted analyses we reach the conclusion that countries of Central and Eastern Europe stan...
Public investments are a crucial factor for the achievement of economic growth, increase of natio... more Public investments are a crucial factor for the achievement of economic growth, increase of national, regional and local competitiveness and improvement of the quality of life of local population. In recent years, as the processes of decentralization intensify, local governments were entrusted with increasingly greater responsibilities associated with the construction and maintenance of public infrastructure. The main goal of this paper is to assess the investment capacity of Bulgarian municipalities for the period 2003-2014. Basic research methods used in this paper: historical and logical analysis, analysis and synthesis, comparative analysis.
The activities regarding further improvement of the degree of fiscal decentralization in Bulgaria... more The activities regarding further improvement of the degree of fiscal decentralization in Bulgaria started in 2003. As a result of initiated reforms, Bulgarian municipalities gradually improved their abilities to generate revenue, obtained new responsibilities regarding expenditures, including these for construction, maintenance and expansion of local public infrastructure, and gradually improve their access to debt markets. This paper presents an examination of the development of debt financing of municipalities in Bulgaria. The aim is to reveal how decentralization opened up opportunities to finance municipal investments through debt, as well as to determine the character of debt financing as regards the increased municipal investment capacity. The period of research is 2003- 2015 because this period ensures more accurate results. The object of analysis is debt financing while the research topic is the changes in the municipal domestic debt in Bulgaria. The main information base in...
The study of the reform of territorial and administrative division in Bulgaria has attracted the ... more The study of the reform of territorial and administrative division in Bulgaria has attracted the attention of both researchers and policy-makers. A review of European academic journals has yielded numerous studies on amalgamation reforms and their consequences, albeit mainly in Western Europe (Wollmann, 2008; Boedeltje, 2010; Hlepas, 2010; Vrangbæk, 2010; Copus et al, 2017; Swianiewicz, 2018; Tavares, 2018; Garlatti et al, 2020). We have identified only a handful of papers dedicated to municipal splits. This trend can be attributed to two factors. Municipal splits are rarely the result of a targeted government policy. They rather result from bottom-up pressure from local political elites and communities. Therefore, scholars interested in the impact analysis of government policies concentrate on merger reforms rather than municipal divorces (Swianiewicz, 2020: 28). The second potential contributing factor is geographical location. We have observed that the counties in Western Europe generate greater scientific interest compared to their counterparts in South-East Europe. However, lately there has been stronger interest in municipal secession and more studies devoted to territorial reform in Romania, Slovenia and Hungary can be found (Swianiewicz, 2019; Stanuş, 2020; Dobos, 2021; Brajnic and Lavtar, 2021; Swianiewicz, 2021).
The crisis brought on by the COVID-19 pandemic has strained the capacity of central governments a... more The crisis brought on by the COVID-19 pandemic has strained the capacity of central governments and their healthcare systems but has also had an impact on the financial situation of local territorial units. Insofar as local authorities play an essential role in the enforcement of the lockdowns put in place to curb the pandemic, municipal spending has increased and the funds necessary to keep the measures in place have put an additional burden on municipal budgets, jeopardising essential public service delivery. This paper traces the changes in revenue and spending at local level in Bulgaria triggered by COVID-19 by looking at the level to which the crisis brought on by the pandemic has jeopardised the financial health of municipalities and contributed to an increase in the number of municipalities experiencing financial difficulties. In connection with this, the procedure for financial recovery of municipalities in Bulgaria and its effectiveness have been examined by looking at whether in the period 2016-2020 the number of municipalities experiencing financial difficulties has increased or decreased. The analysis covers the key factors that may lead to an increase in the number of municipalities with financial difficulties, including decreasing local tax collection rates, increasing municipal debt and arrears, etc. The capital activity of local authorities has also been explored. Measures for improving the local governments' financial conditions and mitigating the negative effects of the crisis triggered by the pandemic have been proposed.
Journal of Comparative Policy Analysis: Research and Practice
The concept of the political cycle was formulated in relation to the decision making of governmen... more The concept of the political cycle was formulated in relation to the decision making of governments and parliaments at the national level, but it has also been used as a framework for studying local financial decision making. Most of the earlier empirical studies focused on public expenditures, but later studies also investigated local tax policies. This article argues that, in Central and Eastern Europe (where the concept of political cycle has been applied very early so far), the meaning of typical local taxes is relatively limited, and levies financing local services may be a more likely policy area to demonstrate the existence of the political budget cycle. This case study is related to tariffs for water provision in Poland and solid waste collection in Bulgaria. In spite of official terminology, the legal definition and practice of both duties do not meet all criteria of the rigid definition of user charges for services. Due to their actual nature, the term “earmarked taxes” is used in the title, while the terms tariffs and earmarked taxes are used interchangeably in the text. The existence of the political cycle is tested through panel logistic and linear regression models. According to the legal regulations in both countries, tariffs for both services should be calculated in a technocratic way based on actual costs, however the article demonstrates that the impact of the electoral cycle on actual decisions on the level of levies still exists.
Резюме Кризата, свързана с разпространението на COVID-19 поставя на изпитание прякото доставяне н... more Резюме Кризата, свързана с разпространението на COVID-19 поставя на изпитание прякото доставяне на административни услуги от страна на централната и местната власт. Струпването на големи групи хора и необходимостта на социална дистанция изисква прилагането на по-различен подход при предоставянето на публичните блага и услуги. Настоящият доклад има за цел да представи развитието на е-услугите, които се предоставят от публичната администрация в България и тяхното развитие в резултат на кризата, свързана с разпространението на вируса. В настоящия доклад е представена степента на изпълнение на реформата към електронно управление, новите възможности за отдалечен достъп до публични услуги, които се предлагат на местното население в България. Представени са възможноститe за финансиране на реформата и основните проблеми, свързани с въвеждането на е-услугите и е-управлението. Abstract The crisis surrounding the proliferation of Covid-19 is putting to a test the direct delivery of administrative services by central and local government. The need for social distance requires a different approach to the provision of public goods and services. This report aims to present the development of e-services provided by the public administration in Bulgaria and their development as a result of the crisis related to the spread of the virus. The report presents the degree of implementation of the reform of e-government, the new opportunities for remote access to public services that are offered to the local population in Bulgaria. The possibilities for financing the reform and the main problems related to the introduction of e-services and e-government are presented.
The investment capacity of Bulgarian municipalities for the period 2003-2014 is examined in the p... more The investment capacity of Bulgarian municipalities for the period 2003-2014 is examined in the present PhD thesis. Special attention is given to debt financing of municipal investments. The main objective of this study is to assess the impact of fiscal decentralization process on investment capacity and on credit capacity of Bulgarian municipalities, by examining the development of local revenues and expenditures and changes in their structure. The main determinants of municipal investment capacity are evaluated in the thesis, namely: the level of fiscal autonomy of local government, structure and composition of budget revenues, the mechanism of government transfers, cost autonomy, municipal costs and their structure, access to capital markets, received grants under European projects. As a result of the research on best practices that correspond to the level of fiscal decentralization and institutional development in Bulgaria and are relatively easy to implement, recommendations are made to increase the investment capacity of Bulgarian municipalities (basically) by expanding the total revenue base (own income and capital subsidies) and the access to capital markets (Fund FLAG, establishment of a Municipal Development Fund and an Agency for Funding of Local Authorities).
В последните години общинските финанси са поставени на изпитания. Кризата, свързана от разпростра... more В последните години общинските финанси са поставени на изпитания. Кризата, свързана от разпространението на COVID-19 налага местните власти да вземат решения и бързи действия за обезпечаване здравето на гражданите. Заедно с това се отчита спад в местните приходи, свързан с мерки в подкрепа на бизнеса и гражданите. Настоящата енергийна криза и ръста на инфлацията поставят нови проблеми пред общинските бюджети. Настоящия доклад разглежда динамиката на общинските финанси, очертава основни проблеми пред местните бюджети и предлага някои решения за запазване устойчивостта на общинските финанси.
Университетско издателство СУ Св. Климент Охридски, 2021
Основна цел на настоящия доклад е да анализира и оцени процесът по въвеждане на електронните адми... more Основна цел на настоящия доклад е да анализира и оцени процесът по въвеждане на електронните административни услуги, предоставяни от страна на общините и влиянието на е-услугите върху финансовата дисциплина на местните власти. Разгледани са интернет сайтове на всички 265 общини в България и е направен кратък преглед на е-услугите, които те предлагат. Целта на емпиричния анализ е да изследва нивото на прозрачност и ефективност на местното самоуправление, опциите за комуникация с представители на общината, наличие на формуляри за декларация за данък върху имотите, своевременно публикуване на свободни работни позиции в общините и наличието на портал за е-услуги и др.
Survey of Local Government Investments – dynamics and sources of financing: the cases of Bulgaria and North Macedonia, 2019
Local and regional authorities play a crucial role in the implementation, maintenance and rehabil... more Local and regional authorities play a crucial role in the implementation, maintenance and rehabilitation of public infrastructure. Sub-national governments in the countries of OECD implement 57% of public investments while the implementation in EU countries is over 50%. The investments of local authorities of South and Eastern Europe increased in recent years, but the ratio of local investment to public investments made in many countries is under the EU average. At the same time, sub-national governments in SEE obliged to cover greater costs for the transportation infrastructure, the energy and road sectors, than the local authorities of Western Europe. The purpose of the article is to investigate the investment capacity of local authorities in Bulgaria and North Macedonia as representatives of SEE. An analysis of dynamics of capital costs for the period 2013-2017 is performed. The main sources of investment financing and direct investment capacity are researched. Based on a historical review of trends in finding sources of financing of capital costs (own sources, capital transfers from the central government, local expenditures) and current legislation and tendencies in the public investment sector, the possibilities for increasing the number of sources of investment financing and the inter-municipal cooperation are analyzed. Alternative sources of financing are studied due to the increasing investment needs. In addition, the paper provides comparative overview of the ratio of local investment to public investment and local investment and GDP in Bulgaria and North Macedonia and a comparison with the EU countries. The possibilities for introducing new local taxes and alternative sources for capital funding, including expansion of the local debt financing market and inter-municipal cooperation are investigated. 2 The investment capacity of sub-national authorities is crucial for the absorption of EU funds. Regarding the infrastructure projects, municipalities must ensure own contribution (through own revenue, net operating balance or debt financing). Lack of sources for municipalities' own contribution hampers their participation in EU projects.
Public investments are an essential precondition for ensuring the appropriate structural environm... more Public investments are an essential precondition for ensuring the appropriate structural environment in which the economy of a region works. Public investments are made in order to address horizontal issues in the areas of education, training, healthcare, infrastructure and in other areas. The main purpose of this report is to find what is the link between public investments and economic growth in the EU countries. We use the indicator " General government gross fixed capital formation " in order to measure the level of public investments. Investments made at the local level, at the central level, by the state, and by the social security funds, are within the scope of the indicator. A cluster analysis which is the basis for tracking the relationship between share of public investments in GDP and the GDP/per capita, by establishing distinct cluster groups is made.
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Papers by Desislava Kalcheva
to a variety of European and international programs that support project implementation. The purpose of this study is to explore funding opportunities for municipal projects aimed at increasing energy efficiency. The study focuses on the potential for financing sustainable projects through green bonds and the establishment of energy cooperatives.
Both instruments are gaining popularity for project financing among European countries, and the taxonomy and dynamics of green bonds warrant particular attention. The research includes a SWOT analysis for implementing green bonds in Bulgarian municipalities, as well as SWOT and PESTEL analyses of the opportunities for establishing energy cooperatives. Additionally, a survey has been conducted to gather
the opinions of Bulgarian municipalities on the topic. The results indicate that both instruments offer significant benefits for financing energy efficiency projects, and their future application could expand the sources of funding for both Bulgarian and European municipalities.
The topic becomes even more relevant in times of financial difficulties. The purpose of this
article is to present the legal framework and fiscal rules for maintaining the sustainability of public
finances in Bulgaria and in the European Union. Particular attention is paid to the European Semester.
A financial analysis of the public finances of Bulgaria for the period 2017 – 2021 is presented.
An analysis of compliance with the financial rules set out in the Public Finance Act is presented.
The main challenges and perspectives are outlined.
to a variety of European and international programs that support project implementation. The purpose of this study is to explore funding opportunities for municipal projects aimed at increasing energy efficiency. The study focuses on the potential for financing sustainable projects through green bonds and the establishment of energy cooperatives.
Both instruments are gaining popularity for project financing among European countries, and the taxonomy and dynamics of green bonds warrant particular attention. The research includes a SWOT analysis for implementing green bonds in Bulgarian municipalities, as well as SWOT and PESTEL analyses of the opportunities for establishing energy cooperatives. Additionally, a survey has been conducted to gather
the opinions of Bulgarian municipalities on the topic. The results indicate that both instruments offer significant benefits for financing energy efficiency projects, and their future application could expand the sources of funding for both Bulgarian and European municipalities.
The topic becomes even more relevant in times of financial difficulties. The purpose of this
article is to present the legal framework and fiscal rules for maintaining the sustainability of public
finances in Bulgaria and in the European Union. Particular attention is paid to the European Semester.
A financial analysis of the public finances of Bulgaria for the period 2017 – 2021 is presented.
An analysis of compliance with the financial rules set out in the Public Finance Act is presented.
The main challenges and perspectives are outlined.