“Inflation struggles with a conservative fiscal policy and declines economic growth. It will continue to be high, but it will stabilize and decrease. We can note a percentage of side effects, even two, but the rhythm slows down. We will see a significant reduction in inflation in 2023. If we continue to pump consumption, we will intensify inflation.” This was stated on Nova TV by Lyubomir Datsov, former Deputy Minister of Finance.
According to him, in the autumn, the EC could launch a procedure against Bulgaria for excessive deficit. “It is a great political risk. We are in violation for whatever reason. There are discrepancies between the data sent by the government and those provided by the ECB. We sent a deficit of 5.3% of GDP, whereas they are talking about 3.7. I wonder if someone has communicated without us knowing,” he said.
According to him, the measures are neither crisis nor anti-inflationary. “It is not clear how much the deficit will jump, if the capital expenditure plan will be maintained. Pensions cost 1.4 billion levs, next year they will cost double, plus an additional update, which is about 3-4 billion additional expenses. The pressure to increase costs will be enormous. We already have a budget increase for non-production costs, so there is no room for capital“Datsov said.
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