Podcast in English
Text size
Bulgarian National Radio © 2025 All Rights Reserved

Economist Mihail Krastev: The budget deficit exceeds 3 billion BGN, the situation continues to worsen

Mihail Krastev
Photo: Yuliana Kornazheva

''The data is alarming because it does not reflect the real picture of the deficit in the treasury. In the spring of 2024, the Bulgarian National Bank made a contribution to the budget, that it was not obliged to make and which cannot be expected to happen annually. If we add these over 600 million BGN, the deficit exceeds 2 billion BGN. According to data from the Ministry of Finance, over 1 billion BGN of the available budget is money for municipalities. Effectively, the budget deficit exceeds 3 billion BGN (EUR 1.5 billion) and the situation continues to worsen'', economist Mihail Krastev said in an interview with the Bulgarian National Radio. "However, this is not the prerogative of politicians in the political crisis we are in – they do not talk about finance, economics, or social policies, but only about their internal party interests'', said Mihail Krastev.

According to the economist, the crisis in public finances can be solved either by generating new debt or by increasing the tax burden on businesses and households, "which is happening gradually anyway, even though politicians claim that there is no such thing". He added that this is happening through the increase of the maximum monthly insurable income and the minimum wage.

''We are close to the economic nonsense of having the minimum wage approach or even equal the average wage in some parts of the country", Mihail Krastev further stated, predicting that this narrowing gap will lead to cataclysms.




Последвайте ни и в Google News Showcase, за да научите най-важното от деня!
Listen to the daily news from Bulgaria presented in "Bulgaria Today" podcast, available in Spotify.

More from category

Sub-zero temperatures in the morning and snowfall in higher places

On Wednesday, the wind from the northwest will get stronger. Cloudiness will be variable, more significant in the afternoon. The lowest temperatures will be between minus 5°C and 0°; in Sofia - around minus 3°C and the highest will..

published on 4/8/25 7:35 PM
Prime Minister Rosen Zhelyazkov

Meeting with prime minister outlines measures to address road carnage

Measures to reduce road accidents and improve road conditions were discussed today at a meeting convened by Prime Minister Rosen Zhelyazkov. "As colleagues, we are fully aware that the deep-rooted problems we've inherited should not be the subject..

published on 4/8/25 6:55 PM

Eurostat: Bulgaria tops EU in house price growth

House prices in the EU rose by 4.9% in the fourth quarter of 2024 compared with the same period in 2023, according to data from the European statistics agency Eurostat .  Bulgaria outpaced all other EU countries in the same quarter, with a remarkable..

published on 4/8/25 6:16 PM