/View.info/ The first extremely happy thing in the draft budget for 2014 is that the main priority is education. This is great news because without an educated nation we could neither absorb investment nor create quality and sustainable jobs.
The second thing, which for us at BSK is also positive, is the limitation of the financing of the state administration. Redundancies will definitely lead to savings. It is my understanding that the government’s intention is to have agency cuts after a review of who was doing what and whether it was effective. That is, a careful evaluation of the work of the administration. But for now, we are only talking about the Prime Minister’s statement, which is circulated in the public space. We have not received a draft or other confirmation of his words. The projected increase of the revenue part in the 2014 budget by 1% of GDP compared to 2013 is fully feasible, as huge volumes of VAT are hidden
The volumes of smuggling are also huge and this is well known in the public domain. Unfortunately, a large part of our population is in the gray sector in terms of health contributions and social security. This requires a very serious work of the National Revenue Agency, because these feathers are in its powers. This is a key point if we want to have enough funds for both education and social assistance. Of course, various improvements can be made in the social system as well. Let’s hope that this will happen too, because there are currently extreme costs in the welfare system without any efficiency
The main risk for the implementation of the 2014 draft budget is, above all, the development of the European economy. If it emerges from the stagnant situation and overcomes the consequences of the economic crisis, there will be no problem to implement this draft budget. The other condition for its implementation is to improve the efficiency of national services. The main thing that should be achieved through the new draft budget is the connection of financial flows so that the absorption of investment funds is not stopped. That is, public investments must be guaranteed because without them there can be no opening of new jobs and a fight against unemployment, which is the main problem of our society. We must not forget that any growth is a forecast. And the growth set in the new financial plan is actually based on the forecast for the recovery of the European Union. And the fact that the government hopes that with the payments to businesses, the Bulgarian business, which until now was crediting the budget, will also revive a little. The most basic thing is the elimination of business inequality, because the business in the gray sector is unequal and there is no competition with it. Smuggling is crushing the Bulgarian business. Smuggling is killing Bulgarian agriculture, the Bulgarian meat producer and our food industry, and as a result, our tourism sector is burdened, because the whole economy is “jumped vessels”. Drastic measures must be taken against smuggling, but in its broadest sense, and not only with regard to excise goods – fuels, alcohol and cigarettes.
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Bozhidar Danev, Chairman of the Bulgarian Chamber of Commerce.
The analysis was published in “Standart”
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