There will be an effect from the “Affordable for you” initiative, but not the one that is being sought. This is not an anti-inflation measure. The economist commented this in the studio of “Hello Bulgaria” on NOVA Mikhail Krastev.
“Prices and inflation are controlled with lower consumption. When the state stimulates consumption, we cannot expect a reduction in inflationary pressure. With higher consumption, producers of goods will benefit from maintaining higher prices. In order to reduce prices, consumption must be reduced,” he said.
Krastev also commented on the state budget. According to him, the revenue part is again optimistic and unrealistic. “First we have to become a rich country in order to redistribute resources. With the “lean pizza” before, we got to the point where we did not accumulate debt, and the Bulgarian economy grew”, he stressed.
According to Georgi Vuldjev, measures like “Affordable for you” are steps in the right direction. With regard to the Budget for the next year, he specified that it should be revised in many of its main parts. “It’s really unrealistic. The biggest problem in all feathers is on the revenue side, in terms of the staked VAT revenue,” he said.
In the words of the economist Julian Voinov it is difficult to assess whether the “Affordable for you” measure will achieve an effect. “It is unlikely that consumers will feel the reduction in their budget. It is good to have goods with lower prices”, he said. Voinov also commented on the state budget, adding that the current economic situation does not predispose to such growth as is predicted for next year. “The numbers don’t seem realistic. The EC made it clear yesterday that next year there will not be higher growth, it will even be lower. It is clear that the revenues that are expected will probably not be there,” he added.
Preslav Raykov stressed that the state’s initiative to reduce the prices of certain goods will not have any effect on end consumers. “The market determines the prices. The intervention of the state in the price policy of traders is unreasonable and only creates an administrative burden”, he said.
Regarding the Budget, Raykov clarified that there is a desire to implement the Capital Program, which was postponed. “There are a lot of adjustments that need to be made between votes. One of them is for the state to do more to collect what it can collect,” the financier emphasized. According to him, the budget may be oriented more towards business.