HOW MUCH THE INEFFECTIVE PUBLIC ADMINISTRATION COSTS TO BUSINESS?

“If we take into account some of the main administrations with witch business corresponds, we will see that the revenue from public service fees are 4-5 times higher than the costs needed to maintain the administration and ex-post control.” said Kamen Kolev - Vice President of the BIA in Bloomberg TV Bulgaria’s “Business Start”. According to Kolev between 2012 and 2014 government expenditures have increased with 20%. Revenue from fees takes 4.5% share of the Bulgarian budget. In comparison, Slovenia’s revenue from fees takes only 0.2%. As a part of the GDP, revenues from fees in Bulgaria are estimated at around 1% and in Slovenia at 0.1%.

According to Kolev, the solution to overcoming the problem with the corresponding high levels of corruption and unnecessary administrative burden, is to digitalize public services. For the past 15 years around 3 billion BGN are spent but only around 8% from the registers can provide an effective exchange of information. 1/3 are still paper-based. 98% of all 2800 digital public services are provided from only 5 agencies.