The current draft budget is 85% the same as the previous budget, about which everyone was explaining how the state would go bankrupt. Now it suddenly turned out that this is the only possible budget. The numbers are the same. It's a matter of elementary accounting.
This opinion was expressed to the Bulgarian National Radio by the chief economist of the Confederation of Bulgarian Trade Unions Lyuboslav Kostov.
There should have been a horizontal income policy - at least 10%. Instead of reinforcing the 10 percent, they cut it in half. In the private sector, incomes grow by an average of 13-14% per year. Disproportions are being created, he believes.
According to him, the increased revenue collection set in the draft budget is questionable, and he described those from VAT as "difficult to implement".
The capital program will not be implemented – that's where the money under the PVU is. It was clear a long time ago that we would not receive the second tranche, the economist noted.
"It was clear 6-7 months ago that we would lose the money from the second tranche. Revenues and expenses will balance at a lower level."
Most likely, the debt forecast will not be fulfilled, he admits, arguing that 100% of what was planned is not being withdrawn.
"The problem with the debt is the interest rates. The cost of debt is becoming more expensive and if we can manage with our own revenues, better."
A broad public discussion should be opened on the ratio between direct and indirect taxes, insisted Lyuboslav Kostov.
"We refuse to debate changing individual taxes: here in pieces, there in pieces."