2024-10-05 04:32:01
If the minimum wage is not raised, there will be protests. This is described in the Labor Code, voted in the NA with absolute consensus. This is what Luboslav Kostov, Chief Economist of KNSB, said in the studio of “Denyat na Zhivo”.
According to him, the maximum insurance income distorts the tax system. “The employment rate is at record high levels – 77%. The unemployment rate is at its natural rate. The main driver of growth is domestic demand, and there is no investment. 60-70% of this growth is the result of household consumption, and such there is a problem at the fiscal level, it is a matter of priority to solve it. We insist on raising the personnel costs by 10%, and where they will go, to be decided by the specific sector, according to the performance of the employees and their certifications. “For the second quarter, the average salary has grown by over 17%, which comes from the private sector,” he commented.
The economist pointed out that in the methodology of calculating the poverty line, the base year is 2022, which is a problem, because then inflation started to grow. “We don’t want to take its general level, but that of the small consumer basket. Obviously, people who are on the poverty line buy the most necessary,” the expert opined.
According to him, the flat tax no longer works because it has not reduced the shadow economy, nor inequalities. “The focus on indirect taxes has shifted. That is why the main burden is borne by the society. By October 30, the budget for 2025 should already be in the parliament. 14 billion were the expenses for salaries 3 years ago, currently they are 18 billion. Total in the budget are 80 billion, which is 9.5% of GDP. It grew by about BGN 40 billion nominally, so the costs are nominal,” Kostov told NOVA NEWS.