Inflation is a problem, but it is not a planetary problem, said former Minister of Economy Nikolay Vassilev in the program “Offensive with Lyubo Ognyanov“ on NOVA NEWS. He commented on the upcoming debates on the 2027 budget, the size of the deficit and high food prices.
Vassilev insisted on a change in fiscal policy and budget surpluses. According to him, governments announce a deficit of about 3%, but the real indicator is approximately 5%, and with different accounting practices one can also speak of a value close to 8%.
“I want there to be a surplus in the budget“, said Vassilev.He indicated that in his opinion each of the last seven and each of the next seven years should end with a surplus. The conversation also commented on the deficit of 4.3% set for 2027.
Vassilev linked surpluses to economic growth
The former minister stated that the highest economic growth in the history of Bulgaria over the past 36 years was achieved during periods of budget surpluses. According to him, at that time the state was accumulating funds for investments, and incomes were growing.
“The state was accumulating muscle, strength, huge investments, a large increase in incomes“, said Vassilev.With regard to prices, he made a distinction between the real increase in prices and consumers' perception of inflation. Vassilev emphasized that Bulgaria is not at war, there is no natural disaster, recession or pandemic.
A high markup is not automatically a violation
Vassilev spoke out against the understanding that a large markup in itself proves a violation. According to him, the free market implies different prices, and competition limits the possibility of traders acting as a single cartel.
He gave an example of selling a product with a markup of 5,000%. According to him, such a deal is not illegal if there is a client who is willing to pay the price.
“For me, it is legal and not immoral if someone wants to sell glasses with a 5000% markup and if there is someone to buy them“, said Nikolay Vassilev.He added that with such a sale, the trader will pay tax. Vassilev defined his approach as market-based and pointed out that hundreds of thousands of goods and services are offered in Bulgaria.
Sources: nova.bg