The figures for H1 2010 show that Bulgaria signed 1.5 billion leva less than in H1 2009.
A total of 6,329 public procurements were successfully completed in the first half of 2010, which was 1,377 less than in the first half of last year.
The bulk of the contracts involve small procurements worth less than 50,000 leva for the provision of services, similar to 2009.
Another 46 contracts were awarded 61 million euros, a decline of 138 million euros, with seven more worth $947,000.
According to the sofia echo, Kamen Kolev, Deputy Chairman of the Bulgarian Industrial Association (BIA), said: “The decrease in public procurement spending will have a dramatic impact on businesses, for whom this is a key source of financing at the moment.”
Other companies have voiced concerns that the cutback on public procurement will negatively impact unemployment levels, as there will be fewer jobs.
Last week, it was announced that Bulgaria had extended its public procurement contracts by one year. The deals will now be assigned for a five year period.
However, the new public procurement rule will not apply to projects for construction, delivery and services, and NATO projects.
The amended law will also make exceptions for the extension of a public procurement contract for up to 10 years with regard to granting bank loans for the financing of investment projects, or EU-funded projects.
Edited by Chris Farnell