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Daniela Bobeva: There is a big risk of a fiscal crisis! There are three reasons why the fiscal is in such a state

We are conducting a reckless policy

Nov 24, 2024 20:24 51

Daniela Bobeva: There is a big risk of a fiscal crisis! There are three reasons why the fiscal is in such a state  - 1

Apocalyptic scenarios that we are in crisis are not supported by any numbers. This is what he said in the show “120 minutes” prof. Daniela Bobeva, former minister and lecturer in economics and finance.

„Bulgaria's economy shows enviable resistance to political events. Political instability has been trying to ruin the economy for quite a long time, but it is not easy, Bobeva commented.

According to her, the official ministers of finance are worse messengers than the political ones. “We are not in an economic crisis and there is no forecast for next year to be in crisis and recession. But we are at risk of a major fiscal crisis because we are pursuing a reckless policy,” said the former minister.

In her words, the problem is that we look at the budget in recent years of political instability as a goal, and it is a tool.

There are three reasons why the tax office is in such a state. The first problem is raising incomes in any form, the second – public sector spending increased. The third factor is that there are a lot of decisions related to military spending," Prof. Daniela Bobeva.

She gave an example of the fact that for the first six months of this year, expenses were reported for the purchase of ammunition. “We are treating our potential disease with the wrong medicine. We look at the expenses as something fixed and look for where to get the money, added Bobeva.

According to her one should not touch the banks and “cut the branch we are standing on“.

„Most economic and financial crises are started by the banks. The Bulgarian banking system is well capitalized and profitable. Last year's big profit came from provisions banks made during the coronavirus“, she commented.