„Look at what is happening between fiscal and monetary policy. While monetary policy was trying to be sustainable, we saw that fiscal policy „unties the purse strings“, makes expenditures that increase inflation“.
This was explained in the show „Face to Face“ Lyubomir Karimanski, member of the Governing Council of the BNB.
„The difference between Bulgaria and Croatia is that in Croatia everyone acted as one. There was integrity between the institutions. In Bulgaria, this is still not the case. What sectoral assessment was there to see how the entire preparation and testing process would go? There was no such assessment on the basis of which decisions could be made“, he added regarding the introduction of the euro.
Without a new budget for 2026, but with „indexation“ of salaries
Karimanski explained that he is not a supporter of adopting a „extending law“, since there is a provision in the Public Finance Act that states what should be done in a year when there is no adopted budget – 1/12 of the previous one is being spent.
„Where should an extension law be voted on and where should it contain any measures? This adds tension to financial discipline“, he commented.
„In the extension law, they adopted indexation. And now there will be tension. I don't know why they proposed (indexation – ed. note). The text does not make it clear which inflation is being referred to. Is it the consumer price index or the harmonized index? It is written – with inflation and with all budget organizations. That is, – all“, added Lyubomir Karimanski.
„They did not take into account that inflation has already been set on the basis of 2025. It would have been more reasonable to take the forecasted inflation for 2026. In 2025, we raised salaries by about 20% on average for the entire public sector. They rose by a fraction more. Now in 2026 we are indexing something that we raised in 2025. I have no explanation. This is a political decision“.
According to him, the principle of an increase “for all equally“ is not fair.
“This creates tensions, because there are sectors in which from 2023 to 2025, salaries were increased by 70%. Now we will increase them again. This can only contribute to social tensions between individual sectors“, Karimanski also said.