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Vasil Velev: We currently spend the most on salaries in the entire EU

The mistakes with the minimum pension, which will be received by nearly half of pensioners, also continue in the pension system

Jan 2, 2025 22:31 53

Vasil Velev: We currently spend the most on salaries in the entire EU  - 1

Before the new budget project that has been submitted, the law on collecting revenues and making expenditures, until the budget is adopted, is the better option, especially with the hope of finally forming a government. It is better not to discuss the submitted draft law, to withdraw and adopt the extension law on the budget. It poses a risk insofar as the indiscriminate spending that the parliament voted on last year is starting to be realized and can be very difficult to revise. This was said by the chairman of the AIKB Vasil Velev in the studio of "Denyat ON AIR".

According to him, in some areas a salary increase of 50 to 75% is proposed.

"Currently, we spend the most on salaries in the entire EU, as a percentage of GDP for the "Security" Sector. And from January 1, salary costs are increasing by another 50%, without making reforms, without reducing the number of staff, without reducing the number of people who are not in the field and get in the way. The viciousness of these expenses is preserved, we have a 3-fold wrong ratio," Velev added on Bulgaria ON AIR.

He explained that the money for prevention to the money for hospital care should be 3 to 3, and in our case it is one for prevention, 3 for hospital care.

"Hospitals and pharmacies have strong lobbies, people do not. In the pension system, mistakes also continue with the minimum pension, which will be received by nearly half of pensioners. Our position is that there should be no minimum pension. It should be the same as the insurance contribution, it is calculated by a formula. But if it is very small and the person will be miserable, then there is social assistance", emphasized the chairman of the AIKB.

The guest warned that some policies lead to an increase in taxes.

"What has been proposed is to increase the "Labor" tax, which is the highest, starting next year. It is currently 53%. It will increase by nearly 8 percentage points. What is being done at the moment is to drain resources from the economy, the production sector - where money is made and put into the budget. If everyone is on a budget salary, there will be no one to produce, there will be nothing to eat and nothing to wear, and no one to build housing", Vasil Velev was categorical.

He is of the opinion that in many areas there is a retreat and we are going backwards: "We are at the bottom of the rankings in competitiveness, economic freedom. And we are at the top of the charts in terms of perceived corruption. Public investments are constantly not being implemented".