Investments remain weak, the state administration - bloated, and budget policy - directionless. This opinion was expressed by former Deputy Minister of Finance and member of the Fiscal Council Lyubomir Datsov on the air of the program "Your Day" on Nova News.
Regarding the economic achievements announced by the Prime Minister, Datsov expressed skepticism. „Investments in our country in recent years have been below 2% of GDP, mainly in real estate – "this is not a serious success," the financier said.
He stressed that real progress will only be made when foreign investments reach at least 7-8% of GDP.
According to Datsov, the increase in the country's credit rating is a positive signal, but does not mean an automatic inflow of capital.
„We have a good tax system - one of the best in Europe. But it is not used effectively. Corruption and the lack of legal certainty continue to discourage investors,“ he said.
Budget 2025
„There is no need to brag about the implementation of revenues. They come mainly from growing incomes, not from structural economic strength. Expenditures are growing faster than revenues. And the budget seems to exist only for salaries and pensions“, said Datsov.
He predicts that there will be a problem with the implementation of the budget for 2025, as well as for 2026, if reforms are not made.
„The budget is not just an account for paying salaries. It must finance services”, the expert pointed out.
Commenting on the draft law on price control submitted by Maya Manolova, Datsov described it as “absurd”.
„This law is absurd and dangerous. Imposing price ceilings and fixed mark-ups can lead to deficits and crises. This is reminiscent of central planning from communism“, he warned.