„It is too early to talk about an apocalypse, or too much. If we look at the macro data, there is no such drama. In the last 10 years there has been economic growth. In recent years, despite inflation, incomes have outpaced inflation“.
This was commented on in the show „Face to Face“ on bTV by Valeri Belchev, former acting Minister of Finance.
„Since 2020, inflation has been around 40%. Income growth is up to 60%. The Bulgarian has a higher purchasing power, but it does not feel that way. We forget that all the expenses that the state makes are paid by someone. This someone is Bulgarian business - whether large enterprises, medium-sized or small family businesses. Salary costs are increasing, electricity is increasing by 100%, fuel is increasing by 50%, and they have to survive“.
“Let's think a little about business. In terms of all the techniques for postponing payments - it is absolutely incredible that Bulgaria in 2026 - a country with claims to be the first to produce computers - will not have budget management software. Everything is done in Excel and documents in drawers“, he commented.
“About 20-30% of business in Bulgaria is in the gray sector. Let's reduce cash payments. How many years have we been doing administrative reform? There is hardly any other country in the EU with so much money in circulation“, Belchev pointed out.
He is against the European Commission's proposal to abolish the flat tax.
“In Bulgaria, the tax is not low because of VAT. The profit tax is low, but changing it will create extreme discomfort. It will create a bad signal to investors. In France, one of the presidential candidates is proposing a 100% tax on income over 3 million euros. They have crossed the line there. I think it would be better to limit cash payments and shrink the administration“, added the former finance minister. According to him, it is difficult to implement such a reform because of the unions and the pressure on the government.