BIA: REVISION OF THE BUDGET IS A DEMONSTRATION OF POLITICAL MUSCLES

Revision of the budget is a demonstration of political muscles, but it is not reason to dramatize, it is a normal practice. So says the upcoming budget revision for “This morning” Bozhidar Danev, Executive Chairman of BIA.

He pointed out that there are three reasons for such a move – if revenue performance strongly deviates from the set parameters, if an emergency or when there is a new government with new goals and intentions. Danev said that there are two requirements. He added that the economy is currently in a situation of deflation, which lowers revenue and run a little less than half of the schedule. Professor of the University of National and World Economy - Durankev Boyan said the site of the proposer would want even more debt – 1 billion lev according to him would be enough to have more security in case of fault. Davev pointed out that revision is deficit financing of the economy.

He said that at the moment economy is needed skill labour, as there is no investment, and billions of Euro stand sitting in the accounts of citizens without turn in the economy. “Risk in the policy bears risk in the economy and the money want peace”, he concludes with the statement that the country has potential in natural resources, especially soil. Boyan Durankev said that it is obligatory to increase in minimum wage. He pointed out the need for the least development to increase faster income. If it does not happen, demographic will be inevitable, because young people will leave the country. “We are making adjustments to Djankov, but it is important what form the next budget”, added the professor.