The deficit in the first three months is a serious amount. The deficit in April is also growing very quickly. The expectations are for a deficit of between 2 and 3 billion, which is serious. Compared to GDP in the first quarter and April, the ratio will be over three percent, not to mention four or more. This was said by BNB Board member Lyubomir Karimanski in the show "Denyat ON AIR".
He reminded that he had been alerted many times about this.
"We must be careful when voting on certain expenses and what multiplier effect they may have in the coming years. It would be better if the new budget had a serious review of the expenditure part, but it should be based entirely on the political strategy," Karimanski told Bulgaria ON AIR.
According to him, it is important to know what the government will be as a constantly oriented compass towards the strategy it will implement for four years.
"There should be priority goals in policies. This is important for compiling a budget and for the process in which the budget is compiled. Secondly, it is important for these priorities in policies what tools will be used. In addition to fiscal goals, the consequences for the state should also be defined," he emphasized. According to Karimanski, there should be clear communication with the society based on the consequences and what the effect is.
"Every government should evaluate the implementation of each budget. It is important to conduct a sectoral analysis. Then the relevant policies, consequences, and efficiency can be implemented," the BNB Board member is categorical. Karimanski pointed out that the first thing that needs to be done is to no longer allow public spending for the maintenance of one employee in the public sector to be voted on in specialized laws.
"I have nothing against increasing salaries, but they are related to efficiency. When we have redundant processes in the public sector, then we can safely increase salaries and at the same time get economies of scale", the guest believes.
Bulgaria is one of the few European countries that have so-called tax and market valuations of properties, he noted. "Let all valuations that are made at notaries be only market valuations, let's see if there won't be greater collection", Karimanski insisted. Regarding the procedure for returning 1.4 billion euros from the BDB to the budget, he indicated that the goal is probably to reduce the rapidly growing deficit.
"It is possible. These are funds in the capital of this bank. BDB's liquidity is very good. It is bad for the image of the owner of the bank not to get along with the bank's managers," Karimanski believes.
The member of the BNB Board of Directors stated that the unfavorable scenario is one in which inflation will increase due to geopolitical turmoil.