Expensive and ineffective government programs loaded-2010

B-2010 is already in parliament, and what makes a great impression is the high cost and rate of redistribution through the budget. That, at least until the justification is in the public space with the huge costs of pensions, health and education. Yes, these costs and have them really high, but this does not reveal the whole picture. The budget funds many programs of various ministries, which are often very inflated or simply does not achieve any results.
Program budgeting in Bulgaria working on precisely this principle – each ministry to prepare different programs that are funded from the budget. The purpose of this type of fiscal policy is any program can be seen for itself and to fund only those which really is necessary, that are set meaningful and achievable goals. The idea of this type of budgeting is that when the government wants to shrink its costs, it is not necessary to mechanically reduce the cost of all ministries with 10% for example, but simply to stop some of the programs that do not achieve their objectives or not are a priority.
Proceeding from this position, IME team undertook the task to examine the programs of the ministries for 2010 and identify those that can and should be removed. Must specify that we assessed the programs of the ministries in their entirety (from the principled position), but we did not examine each individual activity or expense. This is why some ministries can not identify the entire program to be stopped. However, our observations suggest that many programs may be far more effective.
The total amount of identified programs that can and should be curtailed reached almost 2.8 billion for the year 2010!
Most programs operate for several years in the program budget and is scheduled to continue for the next 3 years. The amount of 2,8 billion refers to the total cost of these programs for 2010, if programs are removed now, and will affect the budgets over the next few years and will release an enormous resource that can be used more effectively.
Cost of unnecessary programs in the ministries are the following:
• Ministry of Labor and Social Policy – 834 million
• Ministry of Regional Development and Public Works – 576 million
• Ministry of Agriculture and Food – 474 million
• Ministry of Economy, Energy and Tourism – 425 million
• Ministry of Transport, Communications and Information Technology – 364 million
• Ministry of Culture – 97 million
• Ministry of Education, Youth and Science – 9 million
• Ministry of Physical Education and Sport – 4 million
• Ministry of Environment and Water – 3 million
• Ministry of Foreign Affairs – 1 million
Leaders are the Ministry of Economy, Energy and Tourism and Ministry of Labor and Social Policy. Their programs for „promoting entrepreneurship and innovation“ (380 million) and „employment and improving the quality of the workforce unemployed and employed persons“ (360 million) are a classic example of unnecessary, but at the same time very inflated costs. Programs for which theory and experience of recent years have shown us that may not work well. Promoting entrepreneurship and providing employment is not achieved with expensive programs, but with good policies. People will be enterprising if they have the freedom to do and not be hampered by the state, and not instead be protected – ie, less regulation and lower taxes, and the judicial system work. In this context, employment can be achieved not through government programs and through lower taxes on labor.

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