"The strategy of the ruling majority for the state budget is already clear – to maintain the current financial framework until the end of the year with the argument that a large part of the expenses have already been made or agreed". This was stated by the senior economist of the Institute for Market Economy Lachezar Bogdanov in the “Interview in NOVA News“.
According to him, the rulers point out that the year is halfway through and there is not enough time to make serious changes to the budget. Among the expenses already set are increases in public sector salaries by 5 percent. According to him, the government already recognizes that the deficit is significant, and that is the reason why the state has to take on new debt.
The economist emphasized that more serious decisions will have to be included in the 2027 budget. “The sooner the reforms begin, the better. The longer they are postponed, the more severe measures will have to be taken”, Bogdanov warned. As an example, he pointed to Romania, where the delay in the necessary actions has led to a serious increase in interest rates and greater pressure on public finances.
According to the senior economist at IME, public dissatisfaction with the budget policy is inevitable and protests will likely become widespread. The reason, he said, is the accumulated dissatisfaction with the way funds are managed in almost all areas financed by the state.