In the long term, the goal is to completely eliminate cash payments.

Our editor-in-chief Georgi Vuldzhev is a guest this week on the show "Resonance" on Eurocom TV with host Vasko Mavrikov.

The topic of conversation between the two was the latest restriction on cash payments, the 2018 Budget, and the state of the pension system.

Regarding the lowering of the threshold for cash payments from BGN 10,000 to BGN 5,000, adopted at first reading, Vuldzhev categorically stated that it is unnecessary and harmful to the Bulgarian economy, because it will create new difficulties for the development of small and medium-sized businesses. He also added:

"Regardless of whether we think the limit is currently too high to affect us, the long-term goal is clearly to eliminate cash payments altogether."

The expenditure and revenue policies set out in the 2018 Budget were also discussed in the Eurocom studio, with our editor-in-chief emphasizing the lack of structural reforms. This threatens the long-term financial health of the state treasury, because the higher spending will be wasted on unreformed sectors where the efficiency of the absorption of state finances is extremely low. What sectors such as education and healthcare need is not higher funding, but lower, but more efficient funding.

The program also discussed the state of the state pension system in Bulgaria, which according to Vuldzhev is in a state of technical bankruptcy. The deficit in the Pension Fund is currently higher than the revenues and, given demographic trends, this situation will only worsen.

"The deficit in the Pension Fund is higher than the revenues. This means that the money the fund has to pay out is twice as much as it collects through contributions."

According to our editor-in-chief, the country's pension system needs a fundamental structural reform, with the state pension insurance system being completely replaced by a private one. This is the only way to prevent a fiscal crisis following the bankruptcy of the Pension Fund and to ensure a decent life for future Bulgarian pensioners.

Video source.

Did you like it? Take a minute to support the EKIP on Patreon!