“Bulgaria is currently wasting public funds by paying compensations to both those who suffer from high electricity prices and those who profit from them. Business electricity compensations may currently reach BGN 1 billion per month – we give more for them than for pensions,” commented the economist Georgi Angelov.
“We must stop this waste of public funds and direct them to where they are needed,” he believes.
“At the moment, there is a contrast between what is being said in front of the media and the real financial results. Big companies are making huge and excessive profits, huge exports, huge production, complaining about lack of people, expanding the staff. There is concern, but the results for the moment are very positive for business, he pointed out and listed in this group the oil business, the banks, the financial sector, and also the industry, which has record production for all time,” Angelov also told Nova TV.
If we restructure expenses, we should start from the inefficient ones – from the subsidies for profitable companies, the economist believes. According to him, from January 1, a new, fairer compensation should be drawn up for households and small and medium-sized businesses, which really suffer from high prices.
“Raising taxes at this moment would be counterproductive. Now we need to stimulate the economy so that more revenues come into the budget. We have BGN 50 billion set aside from European funds, the recovery plan, and we haven’t used a penny. We have to let’s open the programs, let’s set the procedures in motion in order to avoid the risk of recession with these means,” Angelov believes.
“Pensions were increased more than inflation, but salaries lag behind it,” Angelov also pointed out.
Therefore, according to him, the state should consider ways to incentivize businesses to raise wages, for example by redirecting electricity compensation to reduced insurance or tax breaks for families.