Fiscal Council chair calls for austerity and cuts in public administration

Inflation of 7% means that salaries in parliament will increase by 7% next month. All automatic wage indexation in the public sector should be abolished. This is one of the necessary measures for improving Bulgaria’s financial condition, Fiscal Council Chairman Simeon Dyankov told public service broadcaster BNT.

• Former Finance Minister Simeon Dyankov heads fiscal council

Dyankov also called for cuts in the public administration. Another measure he described as absolutely necessary to fight inflation is a cap on markups on goods. Bulgaria is not ready to abolish the flat tax, he added, and urged that VAT should not be changed.

“In just one quarter, we have reached half of the possible budget deficit”, the expert warned.

Edited by Ivo Ivanov

Translated by Kostadin Atanasov