Minister of Finance: Low deficit leads to a policy of stable poverty

Maintaining a zero deficit or 1% of GDP would mean a policy of stable poverty, Finance Minister, Asen Vassilev, said on November 28 in response to criticism from the central bank and the Fiscal Council.

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Vassilev attended the discussion on the draft of the three key budgets - the state budget, the health fund and the state social insurance - in the Parliament’s budget and finance committee.

"We heard many opinions that we should maintain a 1% or zero deficit. This is a stable poverty policy, we are stable - we do not take any risks. The gap between us and Europe remains large. If we want Bulgaria to actually reach Europe we have to do something different than we have done so far," Vassilev explained.

In his words, this is why the costs are so high compared to the revenues. The deficit for 2024 is set at 3% or 6.2 billion BGN. The shortfall will be financed with loans.

"We do not want to increase taxes and we are not doing it. Collection measures are already yielding results. Here is the question and the conversation with the business on bringing light to the grey economy and how can businesses come out of the shadow. It is normal that there is resistance because some people will have to start paying taxes," the Finance Minister said.

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