site.btaGERB MP Dobrev Says Strive to Boost Revenues While Massively Investing Caused Political Crisis

In an interview for the Bulgarian National Television from Friday night, GERB-UDF MP and Chair of the parliamentary Committee on Budget and Finance, Delyan Dobrev, said that the ambition to simultaneously achieve a significant increase in revenues and implement a large investment programme that exceeds the actual capabilities of the tax system is at the root of the problems with the state budget and the ensuing political crisis.

Dobrev said that several budget options were discussed over the course of about a month, with the first being the least successful, as it reflected the ruling coalition's desire for a sharp increase in revenues and a very large investment programme. The MP reported that according to calculations made by the Ministry of Finance, with the current expenditures, the deficit can be limited to 3% only by increasing taxes.

The second version of the budget did not provide for tax increases but included a reduced capital programme and, at the same time, an increase in revenues and social spending. Dobrev said that GERB was ready to support this version, which provided for an increase in revenues of between 10 and 15%.

Commenting on the adopted budget extension, the MP said that it does not actually provide for an increase in income but only for the indexation of salaries to inflation, which he considers controversial and difficult to implement. For this reason, he says, people will probably receive an increase of around 3.5%, as per the Harmonised Index of Consumer Prices.

According to Dobrev, there are currently no real risks to financial stability or to the adoption of the euro, as the state is functioning under a budget extension, and there is always a government, whether a regular or a caretaker one, that implements the budget.

He stated that the blame for the failed budget is shared among all participants in the coalition, i.e. GERB-UDF, BSP - United Left, and There Is Such a People, but GERB, which, as the largest party, should have opposed the unrealistic spending policies earlier.

Dobrev stated that despite the negatives, the resigned cabinet achieved a key goal, which is progress towards Bulgaria's membership in the eurozone. In his words, the only remaining major Euro-Atlantic goal for the country is membership in the Organisation for Economic Co-operation and Development.

Regarding the future political situation, Dobrev said he expects that the results of the next elections will be similar to those so far and that the country may enter a new spiral of consecutive snap parliamentary elections.