The optimist would say that now we cover 80% of pensioners, while before only 33% - which is good. The pessimist would say that we only think about these people before Christmas and Easter. And if there are elections before Christmas and Easter - even better. I don't think there is anyone who will say that they disagree with the measure. This was stated in “The Day Live” on NOVA NEWS by the chief economist of the Confederation of Bulgarian Trade Unions Lyuboslav Kostov, commenting on the decision of the Council of Ministers on the Easter supplements for the elderly.
He predicts that this measure will most likely cost the state about 20-25 million euros, which is “a negligible amount”. “It is not a question of finding the money. It is more likely being done to "please each other". I suspect that when it enters parliament, the parties will start bidding, as was the case with the COVID supplements," he recalled.
But he was categorical that a long-term vision is needed, not just measures for Christmas or Easter. We need to think about the Swiss rule, about the coefficients, about the relationship with salaries - in general, about an overall policy, the economist emphasized. And he added: "These are crumbs against the background of the total budget expenditures. The state has problems for billions, and we will deal with 20 million euros for two weeks to please the pensioners. There is nothing wrong - we support it. Even the Confederation of Bulgarian Unions of Workers would support twice as much. But we need a long-term vision," Kostov is categorical.
He recalled that the deficit in the National Social Security Fund is huge. “Due to the lobby of business and other organizations, the maximum social security income was not raised at least with the growth of the average social security income. No reform was made to give the system a breath of air. Ultimately, these are our rights - the more social security contributions you pay, the higher your pension, maternity or sick leave you receive. Currently, we have a regressive taxation system - the more you earn, the smaller percentage you pay. This is not fair to people with low and middle incomes, who pay much more as a percentage of their income”, explained the economist.
And he was categorical that the unions propose that the social security ceiling should grow every year, at least with the growth of the average social security income. “At least for a few years, in parallel with the abolition of the pension ceiling, the social security ceiling should also fall. The more you receive, the more you pay in social security contributions and taxes. "We are not proposing more taxes, but equal rules for everyone," Kostov said.