„The state is currently able to pay pensions, social payments and salaries of civil servants". This was stated in the „Interview in NOVA News“ Deputy Prime Minister and Minister of Finance Galab Donev.
According to him, the main question facing public finances is to what extent the revenues in the state treasury actually cover the expenses. „The excessive expenditure is not sufficiently considered, since in previous years we allowed expenses to grow faster than revenues“, Donev pointed out.
According to the minister, the goal in preparing the new budget is to propose sustainable measures that will lead to a more effective structure of public finances and reduce the pressure on the deficit. The government is committed not to increase taxes, including maintaining the current flat tax. Donev stressed that such a change would affect the middle class and is therefore not on the agenda.
The minister assured that social payments will be maintained in their current parameters, as well as wage levels in the public sector. “There will be no drop in income“, he said, adding that at the moment it is not possible to speculate on the specific amount of the minimum wage, as talks are underway between the state, employers and unions.
Regarding the parliament's decision to authorize the withdrawal of a loan of up to 3.8 billion euros, Donev specified: "This is a maximum limit, not a mandatory absorption of the entire amount. The funds are needed to cover payments under the Recovery and Resilience Plan until August 31". He stressed that the state is ready to take steps to limit borrowing in order to avoid a debt spiral.
According to him, the deficit is the result of an unbalanced expenditure structure. "With the right policies, the pressure on it can be reduced", the Deputy Prime Minister is categorical.
Regarding the new head of the National Revenue Agency, Donev said: "There is a clear goal and it is to lighten the shadow economy". According to data cited by the minister, its share in Bulgaria has increased from about 30% to 34.6%, which puts the country in first place in the European Union in this indicator.