After the brief night storm related to the budget, the increase in pensions according to the Swiss rule has been restored. The remaining parameters of the budget are also now clear.
„What is happening is an expression of budgetary nihilism. Looking at these parameters, it turns out that we are proceeding from two assumptions when this budget was drawn up. First - that there are already commitments made for a bunch of expenses that we need to justify and formalize in order to be able to untie the purse strings, and second - we need to optically pretend that the deficit is 3% in order to look okay for the eurozone“, said economist Konstantin Prodanov in „Face to Face“ on bTV.
According to him, this year there are “absolutely unrealistic expectations for revenues“. And he gave an example –
“In recent years, revenues have been growing between 3 and 4 billion every year, this is the growth rate. This year, they are set to grow by 18 and a half billion. Revenues from VAT alone, which usually grow by a billion and a half, two per year – now have to grow by six“.
“All these expectations for higher revenues are masked by a common phraseology that we will improve tax collection“, the economist specified.
He predicts that what will happen is that the investment costs and program will once again not be made. According to him, although the program is included in the budget, it will be cut at the end of the year.
“That is why our budget in recent years, thanks to the low level of investments, has been at a very low level of investments as a percentage of GDP - below 20%. The average in Europe is 25%, and the countries we want to be on par with are going towards 30%“, he added.
And he was categorical that these are the type of investments that could create the prerequisites for long-term and sustainable growth.