Budget Committee in Parliament approved budget extension law

The Budget Committee in Parliament on January 7 approved an extension law for the state budget. Prior to this, lawmakers removed from their agenda the draft budgets for 2025, as well as the budgets for the National Health Insurance Fund and the State Social Security.

Without providing arguments, members of the Budget Committee rejected the discussion of the 2025 budget and the respective budgets for social security and health insurance. They also excluded tax law proposals, which are to ensure revenue for the budget. After three and a half hours of debate and hearing from the caretaker Deputy Prime Minister and Minister of Finance, Lyudmila Petkova, the MPs decided that the state budget needs to be adopted as soon as possible, with an extraordinary meeting of the comimittee to be convened.

The Ministry of Finance urged for a quick approval of the state budget, pointing out that the extension law, approved at first reading, can only operate for three months.

Lyudmila Petkova - caretaker deputy prime minister and finance minister: "The policy aimed at reducing disproportions in 2024 has led to even greater disproportions, greater chaos."

Petkova warned that the lack of a budget could lead to a significant deficit. Municipalities also raised concerns, having already faced payment issues.

"In January, we are supposed to receive 30% of the subsidies for state-delegated activities — 693 million BGN. Yesterday, only 50% of that amount was transferred."

Due to the absence of a budget, there is also no plan in place to compensate businesses for high electricity prices.

"We rely on national responsibility—this affects every citizen, not just non-household consumers. The price is reflected in every product and service."

Trade Unions also called on MPs to act responsibly.

"The public expects the draft law to be passed. I don't know when we will have a budget if you are unwilling to start considering it."

A heated discussion occurred between the president of CITUB and a member of the "Vazrazhdane" party during the committee meeting.

• The Budget Committee voted against extending reduced VAT rate for bread

During the meeting, MPs rejected maintaining the zero VAT rate on bread and flour, proposed by the "BSP - United Left," and the proposal by the MRF-New Beginning party for a moratorium on electricity prices.

Caretaker Finance Minister Petkova explained why funds under the Recovery and Resilience Plan may be lost:

"The main issue with the Recovery and Resilience Plan, both in terms of payments and the implementation of reforms and investments, is the wrong overall philosophy of the plan. From the outset, the plan included significant reforms that are difficult to implement."

At the end of the meeting, Budget Committee Chair Assen Vassilev warned that delaying the adoption of the budget could become a serious problem, especially in the event of new elections.

Assen Vassilev, "We Continue the Change - Democratic Bulgaria": "This means that Budget 2025 will be adopted with a real action date of August 1 at best."

photos by Dessislava Kulelieva, BNT

The GERB-UDF, which will be the first to receive a mandate to form a government, called for the budget to be adopted quickly.

Temenuzhka Petkova, GERB-UDF:"The sooner we resolve this situation, the better. All political forces in the Bulgarian Parliament need to act reasonably, and I urge you to do so as quickly as possible. GERB-UDF is making every effort to ensure that Bulgaria has a stable government and a regular state budget law."

The budget extension bill is expected to be voted in the chamber by the end of this week.

Чуйте последните новини, където и да сте!
Последвайте ни във Facebook и Instagram
Следете и канала на БНТ в YouTube
Вече може да ни гледате и в TikTok
Намерете ни в Google News