Shteryo Nozharov and Vanya Grigorova comment for Bulgaria ON AIR
The update of the state budget is at a dead end. Changing revenues and expenditures to ensure that businesses continue to receive compensation for the corona crisis and retirees will receive a BGN 50 supplement does not seem to be a priority for the 46th parliament. The parliament is working, but there are no committees and no proposal to update the budget. The caretaker Minister of Finance, Asen Vassilev, warned that if the parliament does not update the state budget urgently, the caretaker government will start spending BGN 398 million from the set buffer.
"Even before the previous elections, we required the update because it was clear that if there is no update - even if there are funds, we can not spend them", Vanya Grigorova from Podkrepa explained.
She pointed out that all social partners insisted on the update, but it did not happen.
"There is a decision of the National Council for Tripartite Cooperation, and we support the budget update. However, even those provided in the update, the funds for business are not enough given the forthcoming forced shutdown of businesses. There are several speculations that the update is enough to support the 60/40 measure, but is insufficient for providing support to meet the other needs of the business ", Shteryo Nozharov from BIA commented for Bulgaria ON AIR.
"Bulgaria has increased contributions to the EU because of the Brexit mechanism - 103 million. Thirty million are for airlines. The question is the mechanism for social spending. "Expenditures that will be permanent in the future. But there are also social expenditures that are indisputable. Therefore, some social expenditures should be included in the draft budget for 2022, and not in the budget update," Nozharov stressed.
According to him, there are also controversial costs.
"16 million for EWRC for lost cases by the Commission, which is absurd. The departments with inefficient activities and lost cases should have these funds at the expense of additional remuneration for their employees. There are several others that we can discuss", the expert stated.
Vanya Grigorova believes that if GERB does not want to sign a blank check, they should have updated the budget before the elections.
"The situation was more than apparent. It was clear that measures in support of business and households would have to continue, as there is a social payment for parents who will have to stay at home but have children who go to school. By law, these parents cannot leave their children at home alone until they reach 12. We often talk about business, but we forget that if households have no income, for the most part, they have no stocks with which to they can continue to exist, "she said.
And she is adamant that social spending should increase, not decrease.
"There are such in the former National Assembly who said that their priority is the recalculation of pensions, improving the economic situation of Bulgarian citizens. And when it came to it - they said, "No, we have a different option to update the budget." All right, show it." Grigorova urged.
According to her, the caretaker government has tried to minimize costs to pay where it is vital.
"They keep playing political games and compromising, but life must go on. There are already signs that there are unpaid salaries in various companies that are building highways. Bulgarian citizens are carrying the burdens, and this must stop," Vanya Grigorova concluded.
"In Bulgaria, a large part of the business is small and medium-sized, which means that this business operates for minimal profit. Therefore, a forced shutdown is very risky for the survival of both employment and consumption. Furthermore, as we struggle with insufficient administration, it is urgent to update the budget," Shteryo Nozharov added.
