© Tsvetelina Belutova, Capital
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It is necessary to activate the control mechanisms of the state, because they are stunted and do not work, Deputy Prime Minister and Minister of Finance Asen Vassilev told Darik Radio. According to him, the most crisis month for Bulgaria in terms of inflation will be March or April, but according to him the expected level of 5 to 6% should not be particularly worrying. Vassilev gave “textbook” advice to the people – when inflation goes up, many turn to long-term assets, the value of which rises – gold, real estate, cryptocurrencies.
According to the Deputy Prime Minister, the level of the minimum wage of BGN 700 or 710 in 2022 will be reasonable.
Asked if there is an effect of the reduced VAT rate for some services – 9% for restaurants, books, baby food and diapers, Asen Vassilev answered that the end user has not felt a reduction in prices, but there is some clarification of business and partial clarification of income, but it is mainly due to state aid. According to the Minister of Finance, making social policy through VAT is not the best solution.
According to him, the reasonable deficit in the budget for 2022 will be between 3.5 and 4.5 billion levs, it will be achieved, and the effort of the cabinet will be to “shrink as much as possible”.
There is no change in his position not to reduce the flat tax by 10%. “If we collect the money, it is enough without generating excessive deficits,” Vassilev said.
One of the leaders of “Continuing Change” reiterated his intention to reduce the state administration. The increase in the salaries of those who will keep their jobs will come naturally, as budgets will not be reduced. On December 5, Vassilev announced 15% layoffs in the state administration next year in line with what was agreed in the government talks. He estimates that this means reducing the central administration by 30,000.
One of the first battles that, according to the Minister of Finance, is important for Bulgaria to win in 2022, is to stabilize and win back its energy.
“Our energy sector is very late in the transition to decarbonisation and there are serious problems that need to be resolved urgently,” said Asen Vassilev. He added that there are controversial decisions due to incompetence or bad faith, which have been made over time and continue to be made, and this problem needs to be clarified.
Asen Vassilev was adamant that the ruling coalition between “We continue the change”, BSP, “There is such a people” and “Democratic Bulgaria” is stable, comparing it with the quartets for which most works have been written in classical music, and in the same time do not need a conductor.
“It’s small enough to be interesting and give flexibility to the soloists and at the same time big enough to be sustainable and complete,” Vassilev said.
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