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Lyubomir Karimanski: When we have more deficits, it is normal to go to deficits

When the time comes to make the 2025 budget by October 31 of this year, we must step on the update of the medium-term budget forecast, said the financier

Apr 18, 2024 13:07 61

Lyubomir Karimanski: When we have more deficits, it is normal to go to deficits  - 1

"If the deputies want to make a change, they can introduce that the average monthly balance in the fiscal reserve should not fall below one. Then, on an average month, every time one of the politicians uses the data for his own use, the information can be displayed", commented the financier and former chairman of the Budget Committee in the National Assembly Lubomir Karimanski.

He emphasized that a large number of payments were voted in the last days of the "Denkov" government, as reported by the Acting Finance Minister Lyudmila Petkova.

"They increased the remuneration in the public sector, they voted for spending on the railways, they approved spending on all kinds of projects. A cabinet that is leaving the administration approves in 12 without 5 expenses, which is doubtful how they will be implemented", stated Karimanski.

Before Bulgaria ON AIR, the financier expressed his expectation that all sectors will start asking for money from the caretaker government, and politicians will probably be in a favorable mood during the election campaign.

"Medium-term fiscal and financial discipline is needed. The forecast should be the foundation upon which every budget stands. When the time comes to make the 2025 budget by October 31 of this year, we must also step on the update of the medium-term budget forecast, since it is not there - what will you forecast as of October 31", Karimanski gave an example.

The financier criticized the giving "of kalpak" of money for the poorest pensioners in the form of Easter supplements.

"This does not contribute to the fairness and solidarity of the pension system. If such supplements are given, let them be through the social system, they are distributed with the pensions, people accept them as part of the pension. This in itself misleads people, let's ask whether all these have equal merit", said Lubomir Karimanski.

His forecast is that the budget deficit will continue to increase. And entry into the Eurozone is not expected to happen in 2025.

"When we have more spending, it is normal to go to deficits, the worst forecast is to reach an excess deficit, there is such a possibility. The country's economy has slowed down, revenues are slowing down, already from 2023, when we plan to be more frugal in the revenue part", urged the guest.

Karimanski is convinced that the scandals in the "Customs" Agency will affect the work of the revenue agency.

"Anyway, it was lagging behind, in 2023 the money from duties and customs fees was collected at 80% of what was planned, and now this default continues. The concern is the uncertainty of the administration. In order to have security, the political risk must be controlled", he also said