The deficit is currently not out of control. We estimate the deficit at around 3.7% on an annual basis. Depending on the scenarios under the PSU and the different options for absorbing the expenditure part, the maximum level of the deficit would not increase by more than 5.8%. The claims that the deficit is around 7% are a political forecast, not an expert one. This was stated in an interview with Nova News by financial expert and member of the Fiscal Council Lyubomir Datsov, quoted by novini.bg.
He added that if there is political will and courage to take the necessary steps, things are manageable.
Regarding the excessive deficit procedure that will be opened against Bulgaria by the European Commission, Datsov explained that we are entering this procedure for no other reason than because we have not provided Brussels with a medium-term fiscal framework, given the complex political situation we were in.
“If we had presented a preliminary forecast, we would not have entered this procedure“, the financial expert pointed out and specified that Bulgaria will have to provide the EC with a detailed plan describing how it intends to control and eliminate the excessive deficit.
Regarding the call by private business for civil servants to also start paying their social security contributions, Lyubomir Datsov commented that for this to happen, it is necessary comprehensive administrative reform.
“It is right that just as everyone pays, the public sector should pay,“ he noted.