/ world today news/ The lack of investments is a challenge for our country. The level of aggregate investment in the country to Gross Domestic Product (GDP) is below the level of 1996.
In the first quarter of 2016, according to preliminary data of NSI, it fell to around 15%-16% of GDP, which is a historic low level. This was said at a press conference by Lyubomir Datsov, a member of the Fiscal Council.
“We favorably assess the tax structure of growth and employment in Bulgaria, but at the same time we think that efforts are not enough from the point of view of improving the burden on small and medium-sized businesses. Bulgaria continues to be among the first places in the EU for the burden on small and medium-sized businesses, because of the procedures themselves and the related costs”, said Datsov.
He commented that perhaps the most significant challenge from a macroeconomic perspective, according to the Fiscal Council, is the lower growth of labor potential in every single dimension. Datsov specified that out of 21.3% of total investments in the economy, about 7% are on the budget, that is, private investments have been displaced by public ones.
In 2017-2018, the Council expects more income from insurance. According to financiers’ data, the state could collect another 0.3-0.4% of GDP in the form of taxes. Calculations show that an additional 400 million BGN could be collected.
Lyubomir Datsov expressed his personal opinion regarding “Brexit”, not binding on the Council. Most governments have been unprepared and I personally don’t see a clear plan on what to do in this situation. From here on, everything else about expedited entry is speculation. Whether we will get in fast or not, no one can say.
He explained that he has always supported the position that it is never too late for Bulgaria to enter the Eurozone and the sooner the better.
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