The ambition for a simultaneous significant increase in income and a large investment program, exceeding the real possibilities of the tax system, is at the heart of the problems with the state budget and the ensuing political crisis. This was stated by the chairman of the parliamentary Budget and Finance Committee and MP from GERB, Delyan Dobrev, in the program “Panorama” on BNT.
According to him, several budget options were discussed within about a month, the first being the “most unsuccessful” because it reflected the ruling coalition's desire for a sharp increase in income and a very large investment program. According to Dobrev, the Ministry of Finance has calculated that with these expenses, the deficit can be limited to 3 percent only through an increase in taxes.
He emphasized that the second budget option did not provide for an increase in taxes, but included a reduced capital program and at the same time an increase in income and social expenses. According to him, GERB was ready to support precisely this option, which provided for an increase in income between 10 and 15 percent.
Delyan Dobrev also commented on the adopted extension law for the budget, pointing out that it does not actually provide for an increase in income, but only a text for the indexation of salaries with inflation, which, according to him, is contradictory and difficult to implement. For this reason, according to him, people will probably receive an increase of about 3.5 percent, which is the harmonized inflation index.
According to Dobrev, there are currently no real risks either for financial stability or for the adoption of the euro, as the state functions with an extension law and there is always a government that implements the budget - regular or caretaker.
He stated that the blame for the unsuccessful budget is shared between all participants in the coalition, including GERB, who, as the largest party, should have opposed the unrealistic spending policies earlier.
Dobrev also pointed out that despite the negatives, the resigned cabinet has achieved a key goal - progress on the path to Bulgaria's membership in the Eurozone. According to him, the only remaining major Euro-Atlantic goal for the country is membership in the Organisation for Economic Co-operation and Development (OECD).
Regarding the future political situation, Delyan Dobrev expressed the expectation that the results in the next elections will be similar to the current ones and the country may enter a new spiral of consecutive parliamentary elections.