Former finance chief Milen Velchev has warned that Bulgaria faces spiraling debt as government expenditures outpace revenues while politicians dodge essential reforms to preserve electoral support. The ex-minister told Bulgaria ON AIR that budget architects fear backlash from cost-containment measures despite dangerous fiscal trajectories.
Velchev highlighted paradoxical public sector expansion amid population decline, noting that state workforce growth threatens to reach absurd proportions relative to private employment. While dismissing the doubled dividend tax from five to ten percent as financially modest, he cautioned that the shift signals a willingness to pursue broader levies that could deter investment and business confidence in subsequent budget cycles.
Velchev highlighted paradoxical public sector expansion amid population decline, noting that state workforce growth threatens to reach absurd proportions relative to private employment. While dismissing the doubled dividend tax from five to ten percent as financially modest, he cautioned that the shift signals a willingness to pursue broader levies that could deter investment and business confidence in subsequent budget cycles.
