Long-Term Sustainability Of Public Finance

The subject of the article are significant theoretical and practical issues of the assessment of the long - term fiscal sustainability as an important condition for effective fiscal policy. There are discussed the main indicators of fiscal sustainability, us ed with the multilateral fiscal supervision in the EU. There is analysed the state of sustainability of public finance in Bulgaria in recent years and in particular the trends in this sphere against the background of the crisis processes and their impact o n the national economy and public finance. The principal proposition of the author is that within maintaining a sustainable and reasonable level of the debt, a more flexible policy may lead to a more effective public funding, as well as provide the opportunity for the government to maintain steady tax rates and ensure a favourable business environment without undue fiscal restrictions. With regard to this there is substantiated the necessity to reassess the goals included in the medium - term budget programme and to guarantee sustainability of public finance with much less tension in the budget position.