The government's measures to curb the budget deficit are "by the book" and are a necessary step toward normalizing public finances. This was the consensus between former Minister of Labor and Social Policy Hristina Hristova and Institute for Market Economics (IME) economist Adrian Nikolov on the show "Your Day" on "NOVA NEWS".
"From a managerial perspective, this is an extremely correct step. It starts just as it is written in the textbooks – with analysis, findings, assessment, and decision-making," commented Hristova. Nikolov supported the new financial framework and emphasized that halting automatic salary indexations is "a measure around which the entire professional community had united."
The two experts discussed the finance ministry's planned steps to return to normal budgetary procedures. In addition to ending automatic mechanisms for increasing compensation, there is also a plan to introduce a limit whereby no salary in the public sector will be allowed to exceed the President's remuneration.
In parallel, the authorities plan to reduce personnel expenses by eliminating unfilled vacancies and exercising stricter control over bonuses. "A literal analysis must be done unit by unit in the state administration. There are structures that are struggling and others that are completely redundant," Hristova stressed, insisting that the reform must be targeted, not mechanical.
Regarding investment policy, the Finance Minister emphasizes prioritizing projects to avoid wasting funds on facilities with low public utility. Hristova gave the example of investment programs in small settlements that do not correspond to the actual demographic profile and do not bring the expected added value.
The experts also commented on the topic of Bulgaria potentially hosting the "Eurovision" contest. "Such an event would generate a huge positive effect for the economy – directly through tourism and the restaurant industry, and indirectly through advertising the country as a destination," noted Adrian Nikolov, highlighting the importance of international visibility.
In the context of the budget deficit and the possible issuance of new debt, the economist explained that "debt is not spent on something specific; it goes toward filling the deficit." According to him, it is key for Bulgaria to maintain a rate of economic growth that is higher than the cost of debt servicing to ensure long-term sustainability.
"If there is reason, sustainability, and courage to make these decisions, we can achieve consistency and coherence in finances," concluded Hristina Hristova, emphasizing that the real test is yet to come – in the practical implementation of the announced measures.