Nikolay Vasilev advocates for budget surpluses in Bulgaria

Former Economy Minister Nikolay Vasilev is calling for a fundamental shift in fiscal policy, advocating for budget surpluses rather than deficits. Commenting on the upcoming 2027 budget debates, Vasilev criticized the projected 4.3% deficit, suggesting that while governments often claim deficits around 3%, the real figure is closer to 5% and could reach 8% depending on accounting practices.

Vasilev noted that Bulgaria's highest economic growth over the last 36 years occurred during periods of budget surpluses, which allowed the state to accumulate strength for investments and income growth. He proposed that every year for the next seven years should aim for a surplus to manage rising national debt.

Regarding inflation and food prices, Vasilev distinguished between actual inflation and consumer perception. He argued that inflation in Bulgaria is not a planetary problem, noting the absence of war, natural disasters, or pandemics. Furthermore, he defended the free market regarding high markups, stating that significant price increases are not inherently illegal or evidence of a cartel if competition exists and a buyer is willing to pay.