Link to main version

71

Prodanov after PISA: We are tying funding to the results obtained to a greater extent

The current law on quick loans does not work because of the way in which the protection of borrowers is formed, said the chairman of the parliamentary committee on budget and finance

Кадър БНТ

"Work is being done on a mechanism that will tie funding to the results obtained to a greater extent," said Konstantin Prodanov, chairman of the parliamentary committee on budget and finance from “Progressive Bulgaria“ about education reforms in the studio of "The Day Begins with Georgi Lyubenov" on BNT.

Konstantin Prodanov, PB: "A functional analysis must be done everywhere in order to assess in what way and how to change each system. The administrative reform is already in progress. Healthcare – this is one of the serious problems, the biggest leaks are there. You will see more funds for prevention in the budget. With the Public Procurement Act, we will oblige private hospitals to hold tenders for medicines. There will also be centralized tenders that the state will hold for a certain type of expensive medicines. We have collapsed to unprecedented levels in the PISA ranking, although in recent years we have been spending more and more on education. It needs to be reformulated - we are working on a mechanism that will tie funding to the results obtained to a greater extent. "

Prodanov commented on the upcoming heating season:

Konstantin Prodanov, PB: "I have not heard anything that would lead me to think that gas supplies are a problem. We have enough to get through the heating season without a problem. The budget of the Social Assistance Agency for this season includes over 300 million for energy-poor households. There is a mechanism by which they are allocated. No one will be left without heating. There is also a mechanism to support business - there are two types. One is the one that supports business if the price per megawatt-hour exceeds 120 euros, and the others are more targeted - for energy-intensive enterprises. There are mechanisms and they will be used when needed. "

On fuel prices and government measures, Prodanov commented:

Konstantin Prodanov, PB: "Fuel prices are once again chasing high values. $ 100 per barrel in 2026 is slightly different from what it was in 2022, due to the changed purchasing power and inflation. However, we recognize that they are a problem for a large part of Bulgarians and a package of measures is being prepared to be activated under certain conditions. However, unlike the measures that were implemented in 2022 and which were on a shoestring, so to speak. There was a discount on fuel, regardless of whether you drive a car for 200 thousand leva or an old car. Aid should be targeted and directed at those who need it most. At any moment, the state is ready to react if fuel prices become unbearable. In our opinion, this moment has not yet come."

About the budget of the municipalities, Prodanov said:

Konstantin Prodanov, PB: "All municipalities will be allocated funds based on projects that they have prepared and which are argued as expediency and capacity for implementation. There will be no political bias in the allocation of funds."

About the increase in property taxes, Prodanov commented:

A two-room apartment for 200,000 euros, a three-room apartment for 300,000 euros – How are property prices changing in Sofia?

Konstantin Prodanov, PB: "Tax assessments have not been touched since 2007. Bulgaria collects about 3 times less local taxes than the average for the European Union. This means less money for municipalities, especially smaller municipalities that depend more on the mercy of the state. This type of update will allow them to have more money for public services. There is no way to have indicators like tax assessments, but not change them. We are only talking about tax assessments, but the garbage fee will not be touched, which is actually the largest part of the bill that everyone sees when paying local taxes and fees. And besides, it is being done smoothly. My opinion is that conceptually this type of indicator, like tax assessments, should not be left unchanged for so long, because at some point we will have to catch up. It is much easier to update them in smaller steps that are imperceptible if you do it year after year."

About the quick loans and the government's measures, Prodanov said:

Konstantin Prodanov, PB: "In recent years, neighborhood stores have been closing regularly. In their place, in something that used to be a garage or could have been a garage, exactly this type of company has emerged, luring with attractive offers for quick loans. In front of them are people in good sports shape, reminiscent of the times of the 90s. In recent years, the current law on quick loans has not worked. It has not worked because of the way in which the protection of borrowers is formed. And that is why we are talking about the so-called APR - annual percentage rate of charge. The way it is currently formed, if the letter of the law is to be followed, if you take a 100 euro loan, the allowable interest that can be charged to you if you return it after two weeks is 1.60 euros. Obviously, no company will grant such a loan. And one of two things happens. Either the legal creditor company says: “I don't want your business“, in which case the person seeking credit goes into the gray sector to the moneylender, who is not bothered by this. Or the company itself looks for some way to circumvent this issue with additional annexes and agreements that charge it a much higher interest rate, because this company still has to cover its risk."