Revenues in the budget must catch up with the growth of expenses. With 20% rising costs, and with only about 14% revenue, this 6% must be harvested. This is what the economist Vasil Karaivanov said.
According to him, Bulgaria has lost half a million labor force because of Bulgarians who went abroad. “Each year, 3 billion are capital costs. We have a large increase in the costs of social payments and labor, they are outpacing income from taxes and insurance. This cannot continue for much longer, with political will this trend must stop,” he explained he.
According to him, the potential of the Bulgarian economy has not been realized in recent years. “We have income growth, but also high inflation. A high budget deficit is a very scary thing, small pebbles turn the wagon. An example is Schengen, where we cannot fully enter yet. We are also on the verge of entering the Eurozone, but problems constantly arise. There will again be a minimal deviation from the cherished 3% deficit, there may be a long-term sustainable fiscal policy. It is dependent on foreign investors, it is not bad to infuse fresh money through bonds,” commented the economist to NOVA NEWS.