We have a new year, but an old budget - there is no difference compared to the last 3-4. He said this in the studio of „This Morning“ financier Nikola Filipov added that “we continue to slide along the axis of populism“.
The parameters of the financial framework for 2026 were published on Monday evening, followed by a lightning reaction from both employers and unions.
Financier Levon Hampartzumyan commented that Budget 2026 resembles putting out a fire with gasoline, because the planned increases are pro-inflationary.
“When a budget is made in the corporate world, you get tasks, what you have to achieve with the budget and you fulfill them. The Minister of Finance must come out and say what the goals of this budget are, if any compromises have been made – why they were made, etc. And here – they are hiding somewhere in the holes. From time to time someone comes out to show 2-3 pictures and we have to reflect on what the author wanted to say, added Hampartzumyan.
According to Filipov, only a weak government does not have the will to freeze social payments in the name of reforms that would stop inflation and reduce the deficit.
„They are clearly afraid of reforms. We do not have much time. Bulgaria is facing a very delicate moment - we must carry out all the necessary reforms to put our public finances in order. We have fallen into a total timelessness. I do not see anything positive at the moment“, he also pointed out.
According to him, salaries in state-owned enterprises will increase because they are tied to the minimum wage. Filipov explained that the idea of raising pension contributions by 2 percentage points aims to reduce the deficit a little.
„We are patching things up. If we do this sustainably for several consecutive years, we will hit the wall at 200 km/h. Look at what happened to Cyprus, Greece, Romania. Plans are being made on how to consolidate them. Let's imagine a „financial coupon“ - salaries are increased, people are appointed to the administration. At some point, however, this „coupon“ ends and the bill comes and this bill must be paid, there is no way not to pay“, said Hampartzumyan.
According to him, it is a mistake that no one measures the effectiveness of the public finances spent.