Expenditures in the public sector must not exceed 25% of the gross domestic product GDP of a country.

This is the conclusion of the Institute for Market Economics, which presented a report based on data from the Organization for Economic Co-operation and Development (OECD).

In the last few decades economists are trying to determine the amount of money to be invested in the public sector. Most of the studies show that the optimal percentage is between 12% and 30% of GDP.

The public sector in the developed economies is too big in comparison with the private sector, and this is an obstacle to achieving maximum economic growth. All big economies, including USA, Germany, France, and Italy considerably exceed the 25% limit. The average expenditures in the member countries of the OECD are 41% of GDP.

In Bulgaria, there is a tendency of decreasing them. While in 2003 they were 40,6% of GDP, in 2007 they were 39,1%, and in 2008 - 38. However, public sector expenditures are still way too higher than the level which will allow the maximum economic growth.

The government still takes too much money from the citizens and the business, spends ineffectively and unclearly huge funds, the IME report says, adding that politicians who spend increase the public sector in the name of economic stimulus, rather stand on the way of the recovering of the economy, than helping it.

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