Is it possible to have a budget with a deficit of 3%, commented the financier Vladimir Sirkarov, economists Georgi Vuldzhev and Lyubomir Datsov in the program “Hello, Bulgaria” on "New TV".
They also pointed out two other problems. The first is the lack of messages about what the parties intend to do after the elections with the budget and the economy. The next budget estimate must be prepared. The second problem is that there are no clear commitments to attract foreign investment. In the Balkans, everyone is competing, and Bulgaria is paralyzed by the political crisis.
3% deficit is a serious number, and the estimates of the Ministry of Finance for the next year indicate that this percentage will be difficult to achieve, said Sirkarov. If there are no measures, the deficit will reach 8%, he added. And he explained that these measures must be related to the expenditure part. The financier is of the opinion that projects under the capital program will be delayed. And he added that there will be a reduction in the allocation of funds to municipalities. “There should also be a reduction in expenses related to maintenance, salaries, and the sharp increase in pensions, as the gap between income and expenses opens”, added Sirkarov.
„The situation shows the collapse of the people who said for the last three years that there was no problem with the policy they imposed, namely a high budget deficit and outpacing income growth,” said Datsov. “In order to balance things, either taxes will have to be raised or some of the services provided by the government will have to be cut,” he added.
Vuljev said that the big problem is not the weak growth in revenue, but that we have an absurd growth in spending. “We warned that the costs that are now being set for next year are too high. In the last three years, the long-term current costs have increased a lot, and the way the deficit was covered is that one-time revenue measures were taken”, the economist explained.