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

PM Rosen Zhelyazkov (L) and GERB leader Boyko Borissov.

GERB and DPS-New Beginning rule out early elections

‘This is not the time for early elections,’ said Prime Minister Rosen Zhelyazkov at a GERB party conference. According to BTA, he was opposed to holding elections during the country’s planned adoption of the euro in 2026. GERB chairman Boyko..

published on 10/17/25 1:12 PM
Blagomir Kotsev

Appellate Court-Sofia leaves Varna Mayor Blagomir Kotsev in custody

The Sofia Appellate Court left in custody Varna Mayor Blagomir Kotsev, who is charged with corruption and participation in an organized crime group.  The judgment is final. One of the three judges, Andrey Angelov, signed with a dissenting..

published on 10/17/25 11:03 AM

Justice Minister Georgiev discusses with the EC legislative changes related to the new payment under the RRP

Bulgaria’s Minister of Justice Georgi Georgiev conferred in Brussels with the European Commission team responsible for the Resilience and Recovery Plan (RRP) reforms in Bulgaria, reported the Ministry of Justice. EC: RRP payment depends on..

published on 10/17/25 9:51 AM