We have witnessed an extreme form of institutional nihilism, which borders on dangerous levels. There is a lack of communication with society regarding the entire budgeting process. Only individual segments of the state budget were removed, which were as if tested in a public debate to see how society would react. It was seen that all interested public groups reacted badly. However, not a single question was asked in depth. The cabinet did not explain what kind of budget we are looking for, what Bulgaria is like after 2026, what they will offer us at the end of 2026. These 12-month periods are very short. Our country has a huge number of structural changes, there is a serious demographic issue, many balances of the general equation have been disrupted. This was said by economist and lecturer Assoc. Prof. Kosyo Stoychev in the studio of “Your Day” on NOVA NEWS.
He stated that he is against increasing the tax burden. According to him, worsening conditions for business is not the path that should be followed.
The economist emphasized that inflation is present, and an increase in prices is also expected.
Stoychev was categorical that there are hyperexpectations for the revenue part of the budget.
“The issue of the budget is a national catastrophe. In the normal world, the Minister of Finance technically prepares a budget, it is discussed in the Council of Ministers, after which the minister goes to the budget committee and explains how it is structured. This is discussed there, voted on and we have the state plan-account. This procedure is totally missing. There are people who discuss individual details of the budget, and it should be viewed as a whole,” said financier Levon Hampartzumyan.
Stoychev is categorical that the budget is not fighting the gray sector, but “punishing” the companies that are in the sun – that actually pay taxes and generate taxable turnover with VAT and dividend tax.
Hampartzumyan believes that “people will look for ways to avoid” the additional tax burden and ”they will find them”. And he added that business will leave Bulgaria.
Stoychev explained that the euro cannot fulfill the functions of an ”apology note”. And he was categorical that the budget will worsen the conditions for doing business and increase labor costs.
According to him, there is a need to make a selection of businesses in the country, because there are such companies that are low-productive and are here because of the low wages.
According to the economist, raising taxes is only in the service of the public administration, “which will feed itself for a certain period with funds that it did not deserve and did not produce”.
According to Hampartzumyan, the Bulgarian administration, from being ineffective and poorly paid, is now well paid, but it is not more effective and more componentized.
The "Lukoil" case
"No major player on the world market is showing interest in “Lukoil”, this is worrying. The Bulgarian state will have to find an internal, in-house solution. We need the refinery. The balance sheet shows that we can import fuels from Greece and Romania, we will most likely manage in the long term, but this will be at a completely different market price. Stopping bank operations with “Lukoil” may block the refinery's operations before the introduction of other sanctions for the fuels themselves,” said Assoc. Prof. Kosyo Stoychev.
Finance expert Levon Hampartsumyan expressed hope that a solution would be found somehow, but stressed that the banks would not bet their reputation.