„I don't think a „budget ax” is being set. Rather, we need a reasonable budget plan so that we don't get into a budget crisis. Since the pandemic, spending has jumped over 40% of GDP. Revenues are always 37-38%. That means a hole in the budget. There is no policy direction, it is rather chaotic, governments and finance ministers are constantly changing, big expenses are voted in the plenary hall between the first and second reading. This results in a budget that has no direction. But next year the revenue part will grow by at least 6-7 billion BGN. The budget will be more generous, but you cannot raise salaries in the Ministry of the Interior by 40%. The increase in wages by 7-8% would be absolutely normal.”, said Petar Ganev from the Institute of Market Economy on Nova TV.
According to his words, the additional cost for the increase in remuneration in the force department is BGN 1.2 billion. “There must be an increase, but it cannot be 40%. Parliament must review the decision that set the new pay rule. The same goes for the military. There, the additional cost is 500-600 million for between 30 and 50% salary increase. The same is true for salaries in the higher education system. The decision of the parliament is from March. 0.9% of GDP was set for higher education. There is no other such text for any other sector”, Ganev said.
„It is not possible from today to tomorrow, with some chaotic text in the parliament, to raise the salaries in the largest ministry by 50%,” commented Ganev.
According to him, the VAT discounts and other gaps in the tax system should also be revised.