(C) Government's G in the GDP! Inefficiencies and perversions!

Often, I have been discussing the role of the Government in the “free” markets. Here is a brief summary of my reflections on the Government role in the Bulgarian economy. It may seem I am taking a political stance … I might be … and there is a purpose … to provoke my dear readers to read and analyze basic macro-data which reads the consequences of the central government's policies.

Government spending of above 40% of the Bulgarian GDP signals significant government intervention in the economy. The appropriate government policy during crisis is a focus on the expenditure optimization, rather than budget revenue hike, which is a huge economy and business development hindrance.

One may easily see that in the consolidated fiscal program, the largest share of expenditures regretfully belongs to the non-interest current expenses, which means that 56% of our taxes go for remuneration, insurance and other current expenses of the central government administrative, regulatory and management inadequate apparatus. The civil servants and their management demonstrate inflated payroll structures, teeming with nepotism, inadequate taxpayers’ service and immoral wealth redistribution schemes.

The appropriate policy is a business management approach governed by radical reduction of the inefficient expenditures and eradication of the central budget and EU funds liquidity drain in certain political parties’ vaults.