"Economic Policy Review" Bulletin ISSN 1313 - 0544

Municipalities Are Entitled to a Share of the Income Tax

Petar Ganev / 09.10.2014
It is clear that municipalities need fresh capital for investment. The current structure of Bulgaria’s fiscal policy suggests and inevitable lack of resources in municipal budgets for investment[1]. Not surprisingly, almost all cases of public investment at local level, which can be given as examples of projects that lead to improvement in quality of life, have been are carried out with EU funds. If you go to any major city in the country, the first thing you will notice is that either a park was completely renovated or the tiles and gardens in the city center have finally been fixed. Some may even boast of a new water treatment plant. All of this is usually financed via European funds.

The Liberty Movement in Bulgaria

Maria Neeva* / 09.10.2014
It has already been 25 years since Bulgaria started its unsteady transition to a market economy after a long period of Communist rule. However, our society is yet to experience the true benefits of liberal democracy, as well as arguably – capitalism itself. Widespread corruption and halfhearted reforms in key sectors have been the rule, rather than the exception, in the work of many of our democratic governments to date.

Is the Flat Tax the Biggest Problem of Bulgarian Economy

Desislava Nikolova / 09.10.2014
If anyone traces the election debates in the media he will get the impression that the flat income tax is probably the most important problem to be solved after the election. Whether to keep it or to introduce personal allowance and how much it should be, whether to introduce some progressiveness for income above certain amount in order to punish the "rich" ones with higher taxes, etc. Representatives of all parties without exception enter into this discussion with fervor and enthusiasm, without cherishing time and words in convincing us in their view.

The Low Quality of Roads in Some Districts Lowers Their Competitiveness

Zornitsa Slavova / 09.10.2014
For the purposes of the third consecutive edition of “Regional Profiles: Indicators of Development” the IME acquired data about the condition of the road network at the district level. These data are collected by the Road Infrastructure Agency (RIA), which evaluates the condition of the republican road network (highways, first, second, and third class roads) using a three-staged scale – good, average and poor. In 2013 39,6% of the roads are in good condition, a decrease of 0.7% compared to last year. At the same time the data vary significantly between different districts.