Simeon Dyankov Suggests Increasing VAT to 22% to Address Bulgaria’s Budget Deficit

• Simeon Dyankov suggests increasing VAT to 22 percent to address the budget deficit.
• Key financial topics include speculation around Bulgaria’s eurozone entry, the 2025 budget deficit, and the 2026 Budget preparation.
• Dyankov highlights government efforts for transparency in retail pricing and potential speculation in some sectors.
• Creeping inflation in Bulgaria is attributed to rising administrative costs, not eurozone entry or speculation.
• Administrative expenses are projected to reach 46 percent in 2025, higher than the usual 36-37 percent.
• Historically, the budget shows a surplus by August due to tax revenues, but a deficit is already present in June 2025.
• Dyankov expects discussions on the budget deficit in September, emphasizing the difficulty of spending cuts in a broad coalition.
• The 2026 Budget is influenced by a higher deficit in 2025 and past fiscal policies since 2021, with a focus on a 3 percent deficit rather than a balanced budget.

Source: fakti.bg

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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