Economic Policy Review ISSN 1313 - 0544

New IME Campaign: "State Expenditures in Bulgaria"

Author: IME / 08.02.2010
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 The Institute for Market economics started a new campaign at the beginning of 2010, attempting through observation and analysis to asses the transparency, soundness and efficiency of public expenditures. The long term objective is to reduce the cost of government and more freedom for citizens. 


Bulgarian government spends a huge part of what we produce.

Despite the low direct taxes rates, the public sector continues to grow, and redistributes more than 40% of GDP. We are being taxed when we earn, when we work and when we consume, and all this just to finance a record cost of the Bulgarian governments. 

Since 2003, IME together with leading economists, follows a campaign for lower taxes, which revolves around "three ten": 10% flat income tax, 10% corporation tax and 10% social security contributions. 

Low flat tax has gone from being "foolish and inapplicable idea" by a group of economists, to the previous government's "most successful reform".

Lower direct taxes, however, did not lead to a smaller public sector, on the contrary - in 2010 the government again will spend record-breaking sums, despite the contraction in the economy. A tax reduction has always offset by the increase in another.


Time for change. This year. 

Special campaign for lower and more effective government expenditures will run throughout 2010 and will include: 

  • analysis of public expenditure for the last ten years;
  • analysis of the additional expenditures of the Bulgarian government in those years;
  • analysis of major failures - costly programs or projects which have not achieved their goals;
  • comparisons of public expenditures, showing obvious contradictions and absurdities in the policy.


Reducing state intervention is crucial for economic growth. We believe that the state should redistribute not more than 30% of output. That means several billion euros more in the pockets of taxpayers. 

Lower expenditures will allow us to have more of our own wealth, to save, to invest and to spend according to our preferences.

Our goal is more than clear - less government interference in our lives (and our wallets)!


For more information:

Peter Ganev, +3592/952 62 66,

The Campaign is funded by individual donations