The draft for a new state budget should be ready by the end of September, but talks on it have not yet begun. He commented on this in "The Day Begins on Sunday" financier Lyubomir Datsov, who is a member of the Fiscal Council.
"We do not hear any formulation of any of these policies - what can we expect next year and we see that there is a problem, because the deficit is starting to increase sharply, and this is due to consumer items in the budget structure," said Datsov.
The financier commented that there is no problem with the revenue side, but there is with the expenditure side.
"The revenue side in relation to the economy even has a slightly improved collection rate, that is, both the National Revenue Agency and Customs are working normally. What is happening is that we have an unbalanced expenditure side. At the moment, some political slogans are being set again and instead of talking about reforms, some old great ideas are being revived that will only harm," explained Datsov.
Due to the unbalanced expenditure side, the budget is currently acting pro-inflationary. So in practice the budget causes the increase in prices, and then politicians try to control them.
"Inflation is quite normal, if we look at it, there are normal market fluctuations and normal behavior of economic entities. The only people who try, in general, and I don't know why they first panic, and secondly try to derive some benefit, showing how much they care about the ordinary person, are politicians. You can't pump up income, especially through the budget, by raising certain categories and expecting something else to happen and then adopt punitive measures to control them, you simply can't control this thing," the financier said.
This is how he explained why the latest changes to the Euro Law adopted will not lead to the expected results.
"The budget is not used to distribute salaries, pensions, and so on, the budget provides services and this must be understood. When there is no conversation about what services the budget provides to people, at what quality and at what price, it is simply a basket in which it is mixed and distributed," Datsov added.
Datsov also commented on the idea of re-introducing progressive taxation, saying that the middle class will suffer from it.
"The people who will suffer and lose a lot are precisely those who have relatively good incomes, stable jobs".
There will be an improvement for the poorest, but for the richest - it will not matter.