IME: The 2013 budget must be balanced rather than with a deficit of 1.3%

“Bulgaria’s 2013 budget should be balanced, i.e. without a deficit,” economist Peter Ganev commented at a news conference where the Institute for Market Economics (IME) presented the main parameters of the so-called alternative budget prepared by the Institute. According to IME’s economists, the Cabinet must already  be in a position to project a balanced budget, rather than planning a deficit of up to 1.3% of the gross domestic product (GDP) in the 2013 budget, the same as this year. According to Ganev, this is one of the main prerequisites for achieving tangible economic growth, rather than a trifling one as expected this and next year.

In order to achieve a budget without a deficit, however, it is necessary to undertake some important measures, such as reducing administrative costs by about 10%, limiting State subsidies to some businesses, eliminating the tax preferences for tourism, etc. Ganev added that budget spending is increasing despite the economic crisis and is planned to exceed BGN 30 bn for the first time.

According to IME’s economists, pension insurance via the mediation of the National Social Security Institute (NSSI) should not be mandatory and employees should have the option of choosing between insurance via NSSI or a personal retirement account. Regarding healthcare insurance, IME’s experts said it was time to lift the monopoly of the National Health Insurance Fund (NHIF) and allow part of the contributions to be paid to private health funds.

According to IME’s estimates, Bulgarians with average monthly incomes of between BGN 500 and BGN 2,500 could be conditionally considered as belonging to the middle class and their number is around 1,200,000-1,300,000. It is evident that these incomes are far lower than those of the middle class in Western Europe.

Прочети цялата новина

Свързани новини: