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Dobrin Ivanov: Again we are talking about mass layoffs and the departure of investors from Bulgaria

It is very dangerous to introduce a budget in this situation, as parliamentary populism will erupt. We understand that the budget is in excess deficit if it is passed with the spending that is at stake

Dec 2, 2024 20:15 53

Dobrin Ivanov: Again we are talking about mass layoffs and the departure of investors from Bulgaria  - 1

The budget had to be passed before it was too late. We don't have a single number for a month. The Finance Minister must present a financial framework. This was stated by Petar Ganev from the Institute of Market Economy in the program “ More from the day“ according to BNT.

„It is very dangerous to introduce a budget in this situation, as parliamentary populism will erupt. We realized that the budget is in excess deficit if it is elected with the spending that is at stake. We are in a fiscal mess”, warned Dobrin Ivanov from the Association of Industrial Capital (AIKB).

„Obviously, a normal budget will not be adopted. If we go for an option to extend the budget, it must be submitted to the NA“, Ganev explained.

„The promises were given by parliamentary majorities. Populist promises are subject to change. With the unstable situation in Europe and a deficit that will barely fit in 3%, it seems unrealistic to me to promise to raise incomes,”, he pointed out.

According to Ivanov, measures must be taken in both the revenue and expenditure areas. “It will be very difficult to maintain a 3% deficit this year. Next year it will be much more difficult to maintain a 3% deficit. "The economy is slowing down," he said. According to him, we haven't reached the bottom yet.

„It is more worrying that we are once again talking about mass layoffs and the departure of investors,” Dobrin Ivanov pointed out. According to him, the main reasons for this are the lack of personnel and the unjustified increase in the minimum wage, which increases the costs of enterprises.

„The tragic thing is that the leaving producers are not replaced by new investors. We have no environment. It is very difficult as we are not in a very good position to attract investors – the worsened political environment, the high budget deficit, the raising of insurance and staff salaries, the lack of reforms, the high price of electricity, etc., he also said.