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Budget 2025: Controversies in the Parliament over the state's revenues and expenditures (overview)

MECh party proposes the Parlaiment to give a mandate to the Council of Ministers for the nationalisation of Lukoil

бюджетът държавата скандали парламента приходите разходите
Снимка: BTA
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от БНТ
18:58, 29.01.2025
Чете се за: 10:55 мин.
EN

Scandals in the Parliament about state spending. We Continue the Change-Democratic Bulgaria accused Finance Minister Temenuzhka Petkova of incorrectly calculating the deficit for January and the forecast for the defecit in the first quarter. They called for her to appear before the Budget Committee to correct these errors. Boyko Borissov, leader of GERB, countered by saying that the state budget gap is 18 billion BGN and that the government and the new majority now need to figure out how to fill it.

There was also a proposal from Morality, Unity, Honou (MECh) for the government to take action towards nationalizing "Lukoil". The leader of "MRF - New Beginning" supported the idea. The debate also involved the issue of fuel prices.

According to WCC-DB, Petkova's calculations about the deficit are inaccurate. Martin Dimitrov from WCC-DB criticized the financial data, suggesting that the government was presenting false information to show a larger deficit, citing that revenues for January were about a billion leva less than the previous year. He urged that Petkova clarify how these numbers were derived.

"So Petkova should come to a budget committee and tell these false figures how she got them. It is worrying that at the meeting of the ruling coalition, they did not commit to a 3% deficit. Are they continuing to sabotage the the entry in the Eurozone."

GERB leader Boyko Borissov disagreed with the criticism and blamed WCC-DB for the country's current financial situation. He stated that there was a significant deficit and that the government was forced to continue social policies despite the challenges, referring to the difficulties in managing the public finances.

"An enormous gap of 18 billion. An enormous gap. Right now, we need to try to fill it. At the same time, people are nervous and anxious, and any change to social payments would be catastrophic for the government. Because the people were lied to for 4 years, being told that Bulgaria was working more, earning more, and that’s why they were receiving higher pensions and wages. In other words, we are forced to continue this policy. The 3 percent deficit cannot be removed because there is a law that obliges the government to keep the budget at 3%. Four years ago, GERB brought Bulgaria into the European Banking Union - the largest organisation, and into the waiting room of the Eurozone. The sabotage came from 'We Continue the Change" and Asen Vassilev. Why didn’t they bring us into the Eurozone, so that we don't sabotaging now, but instead inflated inflation, inflated debts, and did everything that, to this day, you’re asking me how we’re going to solve it."

His words provoked Kiril Petkov:

"No matter how much you repeat the 18 billion, Mr. Borissov, the caretaker cabinet put the deficit at 3%, Bulgaria’s GDP is 200 billion, and if you multiply 3% by 200 billion, Mr. Borissov, it’s not 18, it’s 6. So, let’s stop with these lies."

It became clear that Borissov had made a commitment to the restaurateurs:

"Between the first and second reading, I have committed, as the leader of GERB, to keep the 9% VAT rate, as it was, and we will insist on that (the tax for restaurateurs). There are groups of people who, during these four years of chaos, have endured a lot."

The discussion turned to the issue of fuel prices, with Borissov claiming that WCC-DB had been responsible for taking money from Bulgarians through higher fuel prices. Kiril Petkov from WCC-DB responded, accusing the previous government of lying about the cost of fuel and arguing that the price had only risen under GERB's leadership.

Boyko Borissov, leader of GERB: "Our checks showed that every day WCC-DB were stealing from the incomes of Bulgarians, taking 1 BGN per litre from petrol and naphta. Billions, a lot of billions, and Bulgarians, like the example of the frog in a pot of water that heats up slowly, don’t realize what’s happening. Bulgarians have become poorer by nearly 10 billion because everyone who has driven a car like yours has been contributing 1 BGN per litre to 'Lukoil' every day."

Kiril Petkov - WCC-DB: "Both petrol and diesel have gone up by 7 and 8 stotinki (coins) on average in January, which means that the lies are starting to be exposed. This was the lie about the 1 BGN of Deliyan. Look, the GERB government came, and the price went up by 8 stotinki (coins)."

According to MECh, the issues with the lack of funds in the budget will only be resolved once the state terminates the concessions and reclaims strategic assets given to private companies.

Radostin Vassilev - chairman of MEC: "MEC proposes the nationalisation of 'Lukoil', the refinery, and the associated infrastructure network, including the petrol stations. What is the goal? The goal is for Bulgaria to regain ownership of a strategically important asset for national security. The aim is for the Bulgarian state to receive several billion BGN annually and not be left wondering how to piece together a budget with a 3% deficit."

'MRF - New Beginning' supported the idea. Delian Peevski warned about a possible provocation from the Kremlin:

"Lukoil" is going into scheduled maintenance and will be shut down for several months. We will see if there will be fuel available for the market. Here, the state must intervene to check if there are enough reserves and what is going on. Isn't this a provocation from Russia to stop 'Lukoil' before they sell it to someone? I hope it’s not to a proxy. The most sensible thing right now is for the state to step in, to buy 'Lukoil' under the condition that there is a golden share and a parliamentary decision that grants approval for the buyer. It costs around 3 billion. 20% co-financing from banks, a state-guaranteed loan, we take it immediately, and it will be paid off in a few years with these profits."

WCC-DB saw vested interests behind such a deal.

Nikolai Denkov - WCC-DB: "Imagine us pulling out 3 billion BGN, despite all the talk about the budget gap from both your and our pockets, and then buying 'Lukoil' so that it ends up in the hands of Peevski, and maybe even an energy minister who has a family business under the 'Lukoil' brand."

photos by BTA

Tomorrow, the Parliament is expected to hear Prime Minister Rosen Zhelyazkov, Energy Minister Zhecho Stankov, and Economy Minister Petar Dilov regarding the state of the refinery.

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