The main defect of the budget is the pledged debt. The debts that were taken during my time are less than GERB now wants to take in one year. All the debts that we have taken have been invested. The pledged debt now is for over 15 billion levs. This is the net debt of the state, which in one year will be 24-25 more than in the last three years taken together. This was stated by the former Minister of Finance and co-chairman of “We continue the change“ (PP) in the program “Face to face“ on BTV.
For every lev of debt that was taken when I was minister, there are four levs of gross domestic product produced in the economy. This is 136 billion at the end of 2021, and now 203 billion gross domestic product will be produced for 2024. The net debt has increased by 14 and a half billion, and the Gross Domestic Product by over 60 billion, to 62 billion, explained the former finance minister.
Every debt taken during my time has been invested. If this money had been eaten, there would have been no way to raise the Gross Domestic Product by 4 levs. The current debt is pledged for 1 lev of debt that will be taken, which means that for over 15 billion, almost 15 and a half billion net debt increase, 90 stotinki of Gross Domestic Product are produced, not 4 levs. This is what the government has written down as a forecast in the budget. The money that is given to enterprises is sinking into various schemes, he explained.
Our first proposal is to take on as much debt as is necessary to cover the deficit, Vassilev pointed out. We propose to increase assistance for young families. Another measure is to increase maternity benefits. We propose to extend the kindergarten program - every year to allocate money for new kindergartens. Sofia needs 25 new kindergartens, to expand the list of free medicines, so that children have free medicines, the former finance minister listed.
My opinion is that there are all grounds and if the budget is adopted with a 3% deficit, to enter the eurozone, Asen Vassilev emphasized.
The good thing is that a large part of the measures that we propose are self-financing, he also said. According to him, if the proposed PP measures are adopted, the deficit will be 345 million leva less.
Asen Vassilev stated that it is a political decision not to give money to the various institutions in order to keep them dependent.