CSD Policy Brief No. 28: The Hidden Economy in Bulgaria after the Economic Crisis
CSD Policy Brief No. 28: The Hidden Economy in Bulgaria after the Economic Crisis

Author(s): Author Not Specified
Subject(s): National Economy
Published by: Център за изследване на демокрацията
Keywords: grey economy;
Summary/Abstract: MAIN POINTS 􀂾 The hidden economy has grown among businesses, but declined among the population. The social cost of the economic crisis is a declining employment among the groups with the lowest qualifications. * There is a rise in cases involving tax evasion, avoidance of customs, fees, and excise duties, as well as VAT fraud. As businesses suffer through the recession, they become more likely to not declare part of their revenue and economic activities. * There is a slight decrease in the incidence of undeclared payments ‐ in 2010, 11.6 % of the population reported having received a remuneration higher than the one stated in the contract with their primary employer. 􀂾 Governmental measures to reduce the hidden economy do not seem to have produced the desired results. 􀂾 The general economic situation and development are more important for the dynamics of the hidden economy than government control measures.

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