15.11.2016

"The budget is the people's budget, it is a framework - on the one side there are the taxes, the contributions and all the other receivables the state collects to form it, while the other side lays down how and what for the people's money is spent. Since our government is unable to be responsible for governance as we do not represent the majority of the Bulgarian people and have therefore resigned, the question is whether we are the ones to say what the people's money is to be spent for in 2017." This is how the Minister of Finance Vladislav Goranov explained in an interview for the morning programme of Nova TV the resigned Government's dilemma whether to withdraw the 2017 budget bill or to leave it to be voted by the National Assembly.

The minister also vowed the Government's concerns that a number of individual party populist claims could be allowed between the first and second hearing of the budget. "Should there be a majority for populist claims, such decisions could be taken that would put the public finance at risk for many years ahead, they could be destabilised and a modification of the tax system could be required as a result", the finance minister explained. He gave as an example the proposal for an increase in the minimum pension up to the poverty line of BGN 300 put forward by the Patriotic Front representatives, which would cost BGN 1.5 billion per year to the budget, and the fact that yesterday BSP had submitted a proposal for elimination of the flat tax rate. 

The Finance Minister highlighted once again that the 2017 draft budget would not be withdrawn from the National Assembly but the Government would find itself in the interesting position of being resigned and defending a financial framework that someone else would implement. "No one should allow succumbing to populist topics and theses in the Parliament wherefor nobody in the executive would be responsible, and a lot of trouble could be done in such a situation", Minister Goranov said. According to him there is some populism and an illusion and a feeling across Europe that people could spend more than they earn. The Minister explained that "it would be difficult and challenging for those claiming power to make a meaningful analysis of what people actually want and expect without getting hostages of populism". For the Finance Minister populism is telling people what they would like to hear. "If politicians are honest, they are supposed to say what is good in principle for everyone and what is good for the society", Mr. Goranov added.  

As to the Prime Minister's words that he would audit the privatisation deals from the transition period, Minister Goranov announced that there was some analysis that would be presented and that showed the privatisation weaknesses in our country.