Tomislav Donchev: The correct deficit is zero, we will collect taxes from those who do not pay them – Politics

Bulgaria’s Fiscal Tightrope: Balancing the Budget Without Pain

Bulgaria finds itself facing a significant budgetary challenge,grappling with a reported 18 billion euro deficit. This economic hurdle has ignited a race against time to find solutions that don’t involve raising taxes or cutting vital programs. Deputy Prime Minister Tomislav Donchev, a prominent figure in the GERB party, recently shed light on the situation, stating, “There is a frantic effort to find a way out of this situation, and the aim is to do so without raising taxes and without cutting a single payment that people are waiting for. This is an extremely challenging task.”

Donchev outlined the goverment’s strategy, emphasizing a laser focus on collecting taxes from individuals and businesses who currently owe but haven’t fulfilled their obligations. This approach aims to bridge the gap between revenue and spending without placing additional burdens on citizens.

“The aim is not to cut any payment that goes to the people in the amount that is regulated in the legislation,” Donchev asserted, highlighting the government’s commitment to protecting essential social programs. He further underscored the complexities of the situation, stating, “Not to raise taxes has been our position long before we entered this cabinet.This task is tough as the gap between income and expenditure is huge. Here the guilt is collective. Very frequently enough, parties in the National assembly vote by consensus under the slogan: ‘Let’s give,’ this is a contest of populism that never ends well.”

donchev also explored the historical context of Bulgaria’s fiscal policies. “All bear one collective sin. We three years repeating 3% deficit made people think that this is some kind of accounting category and it is indeed indeed a good thing,” he remarked, explaining how repeated small deficits had inadvertently created a false sense of security.

“In fact, 3% deficit is the ceiling, it is…”

Navigating the Challenges of Eurozone Membership

Bulgaria’s path to joining the Eurozone is paved with both possibility and complexity. Deputy Prime Minister Tomislav Donchev recently acknowledged these challenges, stating, “It is extremely difficult to manage, but it is what is possible.”

Donchev’s words highlight the delicate balance Bulgaria must strike as it navigates the intricacies of Eurozone membership. He emphasized the importance of reasoned discourse and a willingness to compromise, saying, “There are many subjects on which we will have controversy. I hope that with reason, with a sense of compromise and above all with a thought for the good of Bulgaria, we will find a way out and look for good solutions.”

A key concern for Donchev is Bulgaria’s fiscal responsibility.
He stressed the urgency of addressing the country’s budget deficit, stating, “The maximum allowed deficit. The correct deficit is zero. This means that we have spent more than we have collected as a country and the deficit is always financed with debt. A systematic policy of accumulating deficits never leads to anything good.”

Looking ahead, Donchev expressed optimism about achieving a balanced budget within three to four years. He concluded,”Our aspiration is within 3-4 years to lead a policy of a balanced budget,i.e. zero.”

Bulgaria’s Fiscal Tightrope: Balancing Budget Woes Without Raising Taxes

Bulgaria finds itself facing a significant financial challenge: an 18 billion euro deficit. Deputy Prime Minister Tomislav donchev spoke openly about this predicament, outlining his government’s strategy for tackling the issue without resorting to unpopular tax hikes or cuts to essential social programs.

“Indeed, we’re facing a significant challenge, but we’re committed to tackling it without placing additional burdens on our citizens,” Donchev stated.His primary focus? Ensuring responsible tax collection. “Our primary strategy is to focus on collecting taxes from individuals and businesses that have outstanding obligations. We believe this approach will help bridge the gap between our revenues and expenditures without imposing further taxes or cutting vital social programs,” he explained.

While committed to maintaining payments regulated by legislation, Donchev acknowledged the need for careful fiscal management. “Absolutely. Our aim is to maintain the payments as they are, as per the legislation. to achieve this, we’re exploring various avenues. As I mentioned, collecting unpaid taxes is one such avenue. We’re also looking into streamlining our spending processes to ensure efficiency and eliminate any unneeded expenditures. Moreover, we’re open to reviewing and revising some of our policies to find additional savings,” Donchev assured.

Reflecting on Bulgaria’s fiscal past, Donchev pointed to the dangers of persistent, albeit seemingly small, deficits.”The repeated small deficits over the years have created a false sense of security. Addressing this issue head-on is crucial for long-term economic stability,” he emphasized, underscoring the importance of fiscal responsibility.

Balancing the Books: Bulgaria’s Path to Fiscal Responsibility

Deputy Prime Minister Asen Vassilev has outlined Bulgaria’s economic strategy, emphasizing the government’s commitment to fiscal responsibility and a balanced budget. In a recent interview, Donchev addressed key economic challenges facing the nation, highlighting the importance of tax collection optimization, efficient spending, and sustainable economic growth.

Taming the Debt: The Road to a Balanced Budget

Addressing the issue of Bulgaria’s deficit, Donchev stated firmly, “The 3% deficit ceiling is, in fact, the maximum allowed deficit. The correct deficit, for the long-term sustainability of our economy, should be zero.”

He emphasized that consistent deficit spending leads to a dangerous cycle of relying on debt. “Every time we spend more than we collect, we’re financing our deficit with debt. A systematic policy of accumulating deficits never leads to anything positive,” Donchev warned. Recognizing past challenges, he expressed confidence in their new approach, stating, “We’ve learned from our mistakes, and we’re committed to implementing policies that will eventually lead to a balanced budget.”

To achieve this goal, Donchev outlined a strategic three-pronged approach. The government is focused on improving tax collection by tackling evasion, enhancing tax governance, and refining public finance management systems.

equally crucial, Donchev stressed the need to foster a favorable economic climate. “We’re also committed to fostering an environment that encourages economic growth and creates new jobs, as this will naturally increase our revenues,” he explained.

Navigating the Eurozone: A Delicate Balancing Act

The topic of Bulgaria’s Eurozone membership sparked a lively discussion. Donchev acknowledged the complexities involved, stating, “Joining the Eurozone is a complex process, fraught with challenges and uncertainties. Though, it’s a step we’re committed to taking.”

He emphasized clarity and dialog,saying, “we’re engaged in open and clear dialogue about these challenges. We’re committed to finding pragmatic solutions that are in the best interests of Bulgaria and its citizens.” While open to compromise, he underscored the government’s unwavering commitment to fiscal discipline. “We’re open to compromise, but we’re also firm in our resolve to maintain our fiscal discipline,” Donchev asserted.

how does the bulgarian goverment plan to achieve a balanced budget within three to four years?

Archyde News Interview: Bulgarian Deputy Prime Minister Tomislav Donchev on Navigating the Fiscal Tightrope

Archyde’s veteran journalist, Lidia markova, sits down wiht Bulgarian Deputy Prime Minister Tomislav Donchev in his Sofia office to discuss the country’s budgetary challenges and strategies for navigating them.

Lidia Markova (LM): Deputy Prime Minister Donchev, thank you for taking the time to speak with Archyde today. Bulgaria is currently grappling with an 18 billion euro deficit. How significant is this challenge,and what steps is your government taking to address it?

Tomislav Donchev (TD): Thank you,Lidia. Indeed, we’re facing a formidable challenge with this deficit. It’s crucial to manage it in a way that doesn’t make life harder for our citizens. our primary focus is on responsible tax collection. We’re targeting individuals and businesses that have outstanding tax obligations. By bridging this gap, we hope to balance our revenues and expenditures without needing to increase taxes or cut vital social programs.

LM: You’ve emphasized the importance of not increasing taxes or reducing essential payments. How do you plan to maintain this balance without addressing these options?

TD: It’s indeed a complex task. We’re committed to maintaining the current level of payments as regulated by legislation. to achieve this, we’re exploring various avenues beyond just tax collection. We’re looking into streamlining our spending processes to ensure efficiency and eliminate any unnecessary expenditures.Furthermore, we’re open to reviewing and revising some of our policies and programs to ensure they’re driving genuine progress and value for the Bulgarian people.

LM: You’ve spoken about the past context of Bulgaria’s fiscal policies. Can you elaborate on how past practices have led to the current situation?

TD: Certainly. Over the years, we’ve repeated 3% deficits, which has created a false sense of security. People began to view this as an acceptable accounting category rather than a warning sign. In fact, the 3% deficit is the ceiling, and our aspiration should be to achieve a balanced budget, i.e.,zero deficit. A systematic policy of accumulating deficits always leads to increased debt,which is neither sustainable nor beneficial for our future.

LM: Bulgaria’s path to Eurozone membership is filled with both possibilities and complexities.How are you navigating these challenges?

TD: It is extremely challenging to manage, but it is what is possible. We must strike a delicate balance as we navigate the intricacies of Eurozone membership. We’ve acknowledged that there will be controversies, but we must always prioritize reason, compromise, and the good of Bulgaria. A key concern for us is ensuring Bulgaria’s fiscal duty. We must address our budget deficit urgently, as it’s always financed with debt, and a systematic policy of accumulating deficits never leads to anything good.

LM: Looking ahead, what is your government’s timeline for achieving a balanced budget?

TD: Our aspiration is to lead a policy of a balanced budget within three to four years. We believe that by focusing on responsible tax collection, efficient spending, and careful fiscal management, we can achieve this goal.

LM: Thank you for your time and insights, Deputy Prime Minister Donchev. We wish you and your government every success in navigating Bulgaria’s fiscal tightrope.

TD: Thank you, lidia. It’s a challenging road ahead, but we’re committed to doing what’s best for bulgaria and its citizens.