This year we celebrate Tax Freedom Day on May 20th
In 2021 we will spend nearly 140 days working for the country. Despite the severe impact of the pandemic, the consolidated budget revenues for this year are expected to reach BGN 47.6 billion. The expected size of the country's gross domestic product for 2021 is 124.5 billion, which means that on a yearly average the Bulgarians will make 341 million leva. If we assume that everything we've produced since the start of the year enters the state treasury, we need approximately 140 days to fill it. Following that same logic, Tax Freedom Day for 2021 should be on May 20th, which is the most delayed date for "tax" freedom for the last 10 years.
The pandemic affected the budget. Redistribution has increased, and consolidated revenues for 2021 are expected to reach 38.2% of the country's GDP. After the recovery from the previous crisis, - from 2013 to 2018 - revenues are in the range of about 35-36% of GDP. The increase now shows that the role of the state in the economic life of the country is growing. Another major change confirms it - the significantly higher public spending and the associated large deficit, which this year is expected to reach BGN 4.9 billion.
The BGN 4.9 billion amounts to more than 14 days additional days in the office. These are the extra days during which the economy works for the budget if it had to cover the planned deficit. We call them working days because the deficit always weighs on taxpayers in the end - even if it's postponed. The latter receive assistance from European citizens, as the planned aid in the budget is nearly BGN 4 billion. The transfers from the EU will practically benefit us with nearly 12 days of work. The official tax freedom date - May 20, 2021, includes all revenues, incl. the "contribution" of European taxpayers.
As expected, the greatest burden falls on working Bulgarians. The tax freedom day comes with a delay, as it falls within the scope of income taxation, incl. replenishment of insurance funds. Against the background of the unprecedented collapse of economic activity in the first half of 2020, working Bulgarians continue to contribute more and more to the state treasury. The existence of various spending measures in response to the crisis is primarily due to the taxpayers who have borne the full brunt of the pandemic.
