Last year discussions for introduction of the so-called fiscal board in Bulgaria led to a project of the “Financial Stability Pact" prepared by the Ministry of Finance and presented by Simeon Djankov. The pact provides for fiscal rules which cannot be bypassed by a simple majority in parliament – probably with their enrollment in the Constitution...
"Economic Policy Review" Bulletin ISSN 1313 - 0544
Only half a year ago the labor unions and the Social Minister insisted on raising the minimum wage (MW) in 2011 to 270 BGN. This did not happen then, but now KNSB, teamed up with Totyo Mladenov, are pushing for the increasing of the MW by as much as 50 BGN (from 240 to 290 BGN) by mid-year on. Their motives are similar to the last year ones – more money for the workers, fair price of labor, budget revenues, and economic growth. But, is that the case?
BNB data on FDI flows in 2010 justified the expectations for a drastic drop of FDI flows to Bulgaria. Last year there were inflows in the country amounting to EUR 1.359 million, which represents an annual decline of almost 60%.
Institute for Market Economics and Bulgarian Macroeconomic Association with the support of America for Bulgaria Foundation created the first economic library in Bulgaria. The official opening of the library was in June 2010.
Till May the 4th Bulgarians will work in order to pay their taxes for 2011. Figuratively speaking, this is the day on which citizens will stop working for the government and start working for themselves. The date is symbolic, showing when all of the projected revenue will be collected if everything earned is immediately confiscated – we call it day of freedom from government, but in English speaking world it is known as the Tax Freedom Day.
The introduction of the Cash Restriction Act is a subject of great public interest, due to the fact that its basic idea is quite easy to understand and debate, and also because it is viewed as just another way for the government to intervene in purely private business – payments in an economy.
It seems that economic growth in the last quarter of 2010 (2.1% on annual basis) was not sufficient to support income growth. This becomes clear from the NSI data on income, expenditure and household consumption, which were published in the beginning of the week.