In recent months, some politicians have been saying that there is a hole in the budget, others say that there is not. The truth is whether we look at what accounting practices we use to see what the real picture is. This was said by economist Svetlin Tanchev in the show "Denyat ON AIR".
He specified that the Ministry of Finance makes 3-year forecast frameworks that show what would happen.
"The tax is what the state collects through tax policy and laws. The rest is monetary policies. We have to go out and take a loan, because it cannot happen through the economy. The economy is shrinking. In the last 12 months, we have hardly had a month in which industrial production was in a positive direction. This leads to a lack of revenue in the treasury through taxes", Tanchev explained to Bulgaria ON AIR.
"There are about 30 billion on the touchline and waiting. I expect much more flexible and serious measures from the Minister of Finance. There are options. In America, Trump declared a national catastrophe, they are starting to extract even more shale gas and energy carbon resources. We are doing nothing to increase revenue through the tax system. Politicians prefer the easier option. Our politicians want not to stimulate people and business to get moving, but to hand out money like crazy. This is a wrong move in the economy," the economist is categorical.
According to Tanchev, Europe is clear and tells us well in advance when and how it should happen in order to achieve our goal.
"It would be irresponsible to introduce these costs piecemeal, send a convergence report and expect that something different will happen. There is definitely a concern that we will not be able to cope with these 3%. The other concern is that we can pump up inflation again. Inflation is a worrying aspect. We need to have low inflation levels," he recommended.
The hole in the budget and what is ahead will distance us, since inflation will be at different rates, Tanchev predicts.