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Kancho Stoychev: Our financial system is heading for collapse. This budget will be unsustainable

He explained in simple words that the budget represents a balance between revenues and expenses. "When there is no balance between one part and the other, it is a problem. The shocking thing is that 20 billion more expenses are proposed, which are justified by 20 billion more revenues written on paper

Dec 11, 2024 20:46 47

Kancho Stoychev: Our financial system is heading for collapse. This budget will be unsustainable  - 1

I don't remember such a mistaken philosophy of the budget. These 20 billion more revenues have nowhere to come from. Lyudmila Petkova also admitted it, but she was not the one who adopted the laws that necessarily increase one or another parameter in the budget. The budget should be made by the one who will bear political responsibility. He said this in an interview with “Face to Face“ Kancho Stoychev – Deputy Chairman of the Association of Industrial Capital in Bulgaria (AIKB).

He explained in simple words that the budget represents a balance between revenues and expenses. “When there is no balance between one part and the other, it is a problem. The shocking thing is that 20 billion more expenses are proposed, which are justified by 20 billion more revenues written on paper. They are completely sucked out of the fingers. Taxes from people and companies that have not paid them, for example. And we are not talking about tax evasion here, but about cases in which companies have declared their taxes, but for one reason or another they cannot fulfill them. From then on, they are charged interest, but their business has collapsed“, he explained.

According to him, a mechanism will probably be invented to allocate money through the Bulgarian Development Bank (BDB), which will flow into the budget. But this is not a good idea at all. “They will come in once. Who in 2026 will come and say that they are cutting salaries in half? A 23% increase in spending on state personnel, state work is expected. From 14.6 billion to 18 billion. We are massively spending money that we have not produced“, remarked Kancho Stoychev.

And he warned: “In this way, our financial system is heading for collapse. This budget will be bankrupt in the first six months. The biggest corruption in Bulgaria is the one we see in parliament – the distribution of money that has not been produced. In 2028, we will pay 3 billion in interest, what will happen to our country? This budget must be started again“, the deputy chairman of the AIKB is categorical.