site.btaMay 13 Marks Bulgaria's Tax Freedom Day in 2024

This year, Tax Freedom Day in Bulgaria will be on May 13 - the hypothetical date on which the people of a given country have earned enough money to pay their total tax bill for the year and, figuratively speaking, begin working "for themselves", Institute for Market Economics (IME) said on Monday.

The budget for this year sets consolidated revenues at BGN 75.3 billion. Assuming that Bulgarians earn more than BGN 562 million per day, calculated on the basis of the projected GDP of BGN 206 billion in 2024, it takes 134 days to replenish the state treasury, the IME said. Taking into account the fact that it is a leap year, the IME estimated that the Tax Freedom Day occurs on May 13.

IME summarized that the issue of the sustainability of the budget, the size of the public debt and the interest rates on it will be particularly topical in the coming years.

Although in 2024 there is a normalization of the budget procedure - there is an adopted budget, a list of investment projects and rules for key budget indicators (for example, the formula for setting the minimum wage), fiscal policy will continue to be under significant pressure, IME noted. These risks are further amplified by the new wave of political instability, which raises questions about both the implementation of the budget and the course of fiscal policy after the parliamentary elections. 

IME highlighted as "the most dangerous in the short term" the decisions for subsidies or tax preferences for hundreds of millions, which have been increasing in recent years and months. The return of the economy to low inflation means that revenues will now depend on collections, and more generally on the growth of investment, income and consumption, the IME said, adding that this is already visible in the current data on the performance of value added tax receipts. This is all part of the real debate about the sustainability of the budget, shrinking the deficit and creating a pro-growth tax environment that politicians owe to citizens ahead of the upcoming elections, IME said.