“It is possible to bring the deficit under control without raising taxes, provided that public spending is reduced.” This was stated by Stanislav Popdonchev, Vice President and Chief Financial Officer of the Bulgarian Industrial Association (BIA), in an interview for NOVA NEWS.
According to Popdonchev, Bulgaria has not yet been officially placed under the Excessive Deficit Procedure, with the final decision expected to be taken by the Council of the European Union following the forthcoming report of the European Commission. He warned that the automatic mechanisms linking public-sector wages to the average salary lead to a sustained increase in budget expenditures that is difficult to offset through economic growth alone.
As necessary measures, Popdonchev pointed to reducing public-sector spending, streamlining parts of the public administration, and abolishing automatic wage-setting mechanisms. He stressed that fiscal stability can be achieved through expenditure restraint rather than tax increases.
