„We have formally fulfilled all the criteria for the eurozone. The question is how much we can rely on the fact that people and businesses are prepared to adopt the euro. Another question is how sustainably we view these criteria“. This was said in the program „Face to Face“ by Lyubomir Karimanski, member of the BNB Governing Council.
„The results for the consolidated fiscal program for the first quarter have been released. It is evident that the revenue part of the country's budget is not being implemented according to the set estimates. Revenues are much less. Revenues, aid and donations in the budget are 20% less than what was set in the budget“, he explained.
„We rely entirely on tax revenues. This lag in the first quarter from the planned should be taken into account that in the first we collect not as much as in the second or third. This means that we are counting on catching up in the following quarters, which is impossible“, Karimanski emphasized.
“The revenues in the budget are greatly overestimated. The strange irony is that the year in which we were accepted into the eurozone, we reported a deficit. The decision (for the eurozone – ed. note, ) is political. Nobody wants to comment on this lag in the revenue part of the budget, because it is not for comment. We are already in deficit in the first quarter, and this cannot be caught up with this fast pace of the expenditure part“, he categorically stated.
The revenues are set so that the fiscal framework can end with a 3% deficit. In my opinion, the authors of the budget were aware that the revenue part would not be fulfilled. "The goal was to present the perfect narrative to the European Commission and the European Central Bank to convince them all that the revenues are feasible. Undoubtedly, revenues have increased, but they cannot increase by 33%," he added.