Bulgaria has a problem with the budget deficit, but it is not a reason for apocalyptic predictions. This was stated by the MP from “Democratic Bulgaria“ Martin Dimitrov, commenting on the country's financial situation and the risk of an excessive deficit procedure.
According to him, the main problem of the ruling party is not the deficit itself, but the lack of a clear plan for its limitation.
“It is very important to make an accurate diagnosis of the situation. Drawing a near-apocalyptic picture is not correct. There is a problem with the deficit, but we cannot talk about a tragic situation“, said Dimitrov.
He added that according to the European Commission's forecasts, the deficit next year is expected to be significantly lower than the government's estimates.
According to him, in recent weeks the government has presented various ideas for limiting spending, but without a clear concept.
“The problem is the lack of a specific action plan. We see individual measures that are announced, then changed or withdrawn. This creates a sense of uncertainty,“ the MP commented.
According to him, before discussing new loans, concrete steps must be taken to reduce costs and limit the deficit.
Reforms in the administration and the “Security“ sector
Among the possible solutions, Dimitrov sees optimization of the administration and changes in the “Security“ sector.
According to him, an analysis of the vacant positions and the bonus system in the state administration must be conducted.
“There are thousands of vacant positions, and the funds are often used for bonuses. This must be reformed and there must be more transparency“, he said.
The MP also called for the elimination of automatic mechanisms for wage increases in some sectors.
“The automatic mechanisms must be eliminated. Any increase must be discussed openly within the budget“, said Dimitrov.
According to him, part of the inflationary pressure also comes from excessive government spending in recent years.
“When large loans are taken out and these funds are poured into the economy, this increases demand and leads to higher inflation. The state is also involved in the price increase“, commented the MP.
According to him, limiting the deficit would also have an anti-inflationary effect.
Martin Dimitrov supported the idea of temporarily freezing the salaries of people holding senior state positions.
“First we must start with the deputies and everyone in senior state positions. This is a sign of empathy for the efforts to reduce the deficit“, he said.
With regard to party subsidies, the MP called for a gradual reduction, and according to him, a balance must be found between savings and the possibility for political parties to function independently of private interests.
According to Dimitrov, Bulgaria should set a goal of reducing the deficit below 3% next year, and in the longer term, move towards a balanced budget.