I do not see any objective reason to have lower rates for bread and for restaurants. There is no crisis situation in these sectors, economist Georgi Vuldjev said in an interview with the Bulgarian National Radio.
"We saw that the effect itself for restaurateurs is not noticeable in prices when they reduced the VAT rate. From a consumer point of view, we did not see a plus. What would be the arguments to keep the low rate? ", he commented on the program "Something More".
According to him, the Law on Revenues and Expenditures should be adopted at the end of 2024:
"A number of cash flows depend on it - pensions, salaries of course, and compensations related to electricity, if there is a surge, as there is still such a risk. If it happens and there is no law, there is no way to pay compensation. That is why it is important that it be adopted."
The economist pointed out that an important detail is the way it works, because when the law is adopted, all additional salary costs voted by the National Assembly come into effect.
"These increases automatically come into effect and can be paid as long as there is money in state institutions. And the law determines the level of revenues that was in 2024. We may find ourselves in a situation with higher wage costs, but there is no money in the treasury to cover them and pay them at a later stage, because they are recorded as liabilities," he commented.
His expectation is that in March, revenues and expenses will be higher, "if the good trajectory continues, they will be 10% higher compared to 2024":
"But it is not enough, because the overall growth of wage revenues is much higher. A large part of the wage increases should not have been planned and the Ministry of Finance should have proposed that they be revised. I don't see how this will happen, because there might not be a cabinet."
Georgi Vuldjev believes that if a comprehensive new budget is not adopted, a revision of these additional expenditures voted in parliament in 2024 should be made.