Банкеръ Daily


Georgi Kadiev: The Lack of Revenue Is a Risk to the 2021 Budget

"All requests of Prime Minister Boyko Borisov for spending in different directions speak of a man who has no intention of ruling for a long time. Unnecessary expenditure is being made, revenues are not fulfilled. 2020 is complicated, 2021 will be just as complicated." This was said to BNR by Georgi Kadiev, a former MP and Deputy Minister of Finance.

He asked the Finance Minister - after the Ministry said that it had a budget surplus of BGN 890 million from January to September, why at the end of the year we will come out at minus 4.4%, which is about BGN 5.1 billion. "There is no physical time to absorb such amounts," Kadiev noted.

According to him, the most serious impression that Budget 2021 makes is that besides spending on the Covid crisis, there is almost nothing new.

"There has been strong spending growth and nominal revenue growth of BGN 2bn, which, I think, will be difficult to implement... In a year when there is no growth in the economy, there is usually no increase in tax collection, because people are starting to make up for missing income by delaying taxes or hiding them… The end result will be a lack of revenue. This is the risk to the 2021 budget," the former deputy finance minister added.

According to Kadiev, it is necessary to make tax reductions for certain sectors, such as tax relief for working mothers, because those who work are stimulated.

"Corporate tax reduction, measures to recover VAT faster, no advance corporate tax collection because it burdens the cash flow of companies. The handing out of BGN 50 to the pensioners and BGN 40 per child does not solve anything", Georgi Kadiev stressed.

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