Bulgarian Business Leader: Budget 2011 Is Science Fiction

The Chair of the Bulgarian Industrial Association, (BSK), Bozhidar Danev (l) during a meeting with President, Georgi Parvanov. Photo by BGNES

The growth of the Bulgarian economy projected in budget 2011 would not be reached, according to the Chair of the Bulgarian Industrial Association, (BSK), Bozhidar Danev.

A growth of 3.6% in the Gross Domestic Product (GDP) is more like science fiction because it means a 2% growth in the third quarter and 5.8% in the fourth, Danev says.

BSK supports taking out a loan in times of recession, but finds it very alarming the funds would be used for social needs, not for reforms and investments, the BSK Chair stated Tuesday, adding the cabinet's budget conceals the real expenditures of ministries because all insurance and health contributions for their employees are deposited as a State transfer and not listed in the said budgets.

Danev further pointed out there isn't a real health care reform with the government steering the funds away from the sector and using them for payments to the fiscal reserve.

"Budget 2011 does not support neither the health reform nor the retirement one. And all this is done to keep people calm because 2011 is an election year," the BSK Chair explained.

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