„In the new Budget 2026, they are trying to preserve all the benefits that some layers and groups of budget support have. In the revenue side, social security contributions will be raised as early as next year, which makes no economic sense. Many of the decisions were made purely politically, and not on the basis of a general strategy. On the one hand, the tensions existing in the budget are reduced by plugging a hole, but in general the problems are not resolved and will be postponed to 2027. This is understood from what individual politicians have said so far”.
This was stated on Nova TV by Lyubomir Datsov, a member of the Fiscal Council and former Deputy Minister of Finance, quoted by novini.bg
“The accumulation of tension on the part of business is very large, it started with the increase in salaries in the public sector, which also contributed to inflation. In practice - it is taken from some and given to others. The biggest problem is the lack of vision. We must make the transition from a consumption economy to an investment economy,” said Dobromir Ivanov, executive director of the Bulgarian Entrepreneurial Organization.
He believes that an attempt is being made “to patch up the current situation, given that there is something else to do”. In his words, several laws should be adopted in this direction.
Datsov also commented that measures aimed at direct taxes affect economic activity. He explained that “instead of stimulating investments, they will be reduced”.
The former deputy minister believes that the increase in social security contributions is “one of the worst decisions”.
Datsov also said that the claim that we have low taxes is a fallacy. And if social security contributions are increased, Bulgaria will enter the top seven countries with the highest social security contributions within the European Union.
The expert also explained that raising social security contributions also raises the cost of labor, and this will to some extent affect inflation, “because consumption continues to be pumped”.
Ivanov also believes that “this is another pro-inflationary thing that is being done, as well as freezing prices”.
Datsov said that the level of employed people on budget support is nearly 20% higher than it was 20 years ago. Ivanov added that this is happening against the backdrop of a population decline.