The budget is tight. It is a function of the loose populist policy imposed since 2021, and there was no way to sharply cut some of the planned expenses.
This was told to FOCUS by the chairman of the Union of Democratic Forces, Prof. Rumen Hristov.
Allowing budgets with a deficit of 3% is not the right policy, because it leaves obligations to future generations. "We are currently continuing the policies we have started, but they need to be gradually adjusted and we need to strive for a broadly balanced budget", Hristov said.
We are currently redistributing about 44% of GDP, which exceeds the limits allowed by the Public Finance Act, he added.
A key priority for the ruling majority is entering the eurozone and the focus of the work should be directed towards that.
Bulgaria is in a complex and unpredictable geopolitical situation, which also has its economic expression. In this sense, there is a risk for the implementation of the revenue side of the budget if production shrinks, Hristov explained. "The budget contains optimistic expectations regarding VAT. Returning to the single VAT rate is fair“, he added.
Rumen Hristov said he was skeptical about the role of the state in regulating market relations and shortening supply chains. “Ultimately, the market economy is the one that should say how we work, and it will say whether state-owned stores have the expected success“, he commented.
The state must take care of agricultural producers and processors, but also of consumers. Regarding the requirement for a 50% presence of Bulgarian goods in retail chains, he noted that there is no such capacity for some products. “We import, we fail to satisfy the domestic market. I don't see how the empty shelves will remain empty and will not be filled with goods from abroad“, Hristov said.
The chairman of the UDF commented on the collapse of the PP MECH group. According to him, Natalia Kiselova has formally complied with the Rules of Procedure of the National Assembly. “If she had not taken these actions, some would have reproached her for not complying with them and tolerating a group that does not number the required 10 people,“ Hristov added.