Valeri Belchev, former acting Minister of Finance, recently expressed strong concerns about Bulgaria's financial management, particularly focusing on the lack of proper budget management tools. In an interview with Bulgarian National Radio, Belchev criticized the absence of budget management software in key governmental institutions, including the Ministry of Finance. He called it absurd that Bulgaria, in the 21st century, remains the only European country without such a system. He emphasized that this lack of transparency opens the door to disputes regarding the state’s financial situation, making it difficult to accurately forecast and create legislation.

Belchev also acknowledged the country's budget deficit but admitted uncertainty about the exact figures. He warned that if Bulgaria’s deficit surpasses 3%, the country could face serious consequences, including jeopardizing its chances of joining the eurozone. He raised concerns that some accounts might be hidden off-balance sheet to obscure the full extent of the financial situation. Belchev likened this potential situation to what happened with Greece and its financial scandal.

Addressing the issue of taxes, Belchev noted that while there is increasing political pressure to raise them, he believes that would only exacerbate the problem. He argued that increasing taxes would merely result in pouring more funds into a system that is inefficient and mismanaged. Instead, Belchev stressed the need for a reduction in state administration, which would allow for higher wages in the public sector and address some of the underlying fiscal issues.

In discussing Bulgaria's potential eurozone entry, Belchev highlighted the contradiction between civil servants' demands for higher wages and the country's ambitions to join the eurozone. This tension, according to Belchev, could create domestic unrest, as half a million civil servants and their families might prioritize personal financial interests over the broader future of the state. He argued that, in this situation, investing in Bulgaria's economic growth, rather than focusing on short-term fiscal fixes, is the better option.

Finally, Belchev addressed Bulgaria's current monetary system, calling the currency board a humiliating arrangement for the country. He firmly stated that Bulgaria should seek to exit the currency board, describing it as an embarrassment for the nation.

Source: BNR