This budget is madness and irresponsibility. I cannot believe that the same people who were reasonable are now falling into such a frenzy. This was stated to Nova TV by economist and former Deputy Prime Minister Nikolay Vassilev.
I am curious which MP from GERB or ITN will like and support this budget. And I urge them not to support it, Vassilev said.
"For the entire transition from 1990 to 2020, budget expenditures were about 30%, reaching 40 percent. Even the left-wing parties were more cautious in spending. And now we are starting to resemble the communist countries of Southern Europe in terms of expenditures of 47% of GDP. Secondly, there are deficit frauds in the budget," the economist was categorical.
The state is misleading that there will be a 35% growth in VAT revenues, while the economy's growth is 3 percent. The goal of such frauds is to bring the deficit to 3%, the economist claims. There are also frauds in the expenditure part, he added.
Vassilev pointed out the expenses through the BDB, which according to him were billions under the table in favor of politicians. The money through the BDB is not budget expenses, but loans are taken out for its benefit and this money will never be returned, he explained.
It is to the BDB that the new 10 billion euros of debt will go, Vassilev expects.
"First, a deficit of 3% is not the right goal. The right goal is to have a surplus in such good years. "Currently, our budget policy is worse than the national football team," he said.
The real, not accounting, deficit this year is going to 8%, next year too. The result is that people will pay higher social security contributions, and in the coming years they must prepare for a terrible increase in taxes, warned Nikolay Vassilev.