Bulgarian Parliament approves 2025 state budget at first reading

The Bulgarian Parliament has approved the 2025 state budget with 152 votes in favour and 73 against. The debate on one of the most significant bills started just after 11:00 PM on March 5 and lasted for four hours.

The budget was defended in the plenary chamber by Finance Minister Temenuzhka Petkova.

She explained that the government had to quickly assess and analyse public finances and propose a budget that meets the requirements of the Public Finance Act and aligns with European rules. The proposed budget, according to Petkova, aims to address critical societal issues and offers feasible policies considering the current circumstances.

In her words, a better option for the budget could be sought, but at the moment this is the only possible one in view of the tight deadlines.

The state budget foresees a record level of revenues and expenditures, respectively over 990 billion BGN in revenues and nearly 97 billion BGN in expenditure. The projected budget deficit is set at BGN 6.4 billion or 3% of the country's GDP, ensuring the plan is in line with the criteria for Bulgaria’s potential entry into the Eurozone.

Other budgets, such as the National Health Insurance Fund (NHIF) budget, were also approved. The Judiciary's budget for 2025, presented by the Chairman of the Supreme Judicial Council, Boyan Magdalenchev, with estimated expenditures amounting to 1.66 billion BGN.

"The budget proposal for the judiciary in 2025, presented by the plenary session of the Supreme Judicial Council (SJC), is aligned with the projected optimal amount of funds required for the efficient functioning of the judiciary. The basic monthly salary for the lowest judicial position is set at double the average monthly salary of employees in the public sector, according to data from the National Statistical Institute," explained Magdalenchev.

According to the National Statistical Institute (NSI), the average monthly salary in the public sector during the second quarter of 2024 is 2,303 BGN. However, Magdalenchev noted that the proposed budget is insufficient, as it only provides an increase in expenses due to the rise in the minimum wage to 1,077 BGN. There is no funding allocated for repairs to new buildings, there is no other money for maintenance.

'BSP - United Left' explained that they would support the budget as a first step to stabilise the situation in the country. The party urged other MPs to support the proposed texts.

"This support is categorical and unequivocal, because this budget is a very important step to take the country out of a severe crisis caused by a series of elections and unacceptable budgetary policies. The proposed draft is also an important step towards stabilising the political situation in the country," said Dragomir Stoynev from BSP-United Left.

Stoynev reminded that the new budget will guarantee salary increases for the military, the police, and teachers. An additional 5% salary increase for the public sector has also been allocated.

'We Continue the Change - Democratic Bulgaria' once again criticised the proposed state budget due to the record level of planned expenditures. According to Martin Dimitrov, over 26 billion BGN are earmarked for additional spending, which has not occurred before.

"The adoption of the budget is one of the most important acts of the National Assembly and sets the direction for the development of Bulgaria. The problem is that the budget prepared by this ruling majority is anti-reformist," commented Martin Dimitrov from WCC-DB.

WCC-DB also warned that there is a serious risk that VAT revenues may not be collected in the projected amount.

The budget was not supported by "Vazrazhdane" party, which stated that, in their view, the budget plan is rigged to ensure Bulgaria’s entry into the Eurozone.

The DRF-MRF commented that they support the budget because it complies with the Public Finance Act as well as the requirements for entering the Eurozone.

"The advantages of the budget lie in seeking a fair balance between spending on investments and for an increase in wage costs. Additionally, a clear and consistent policy for increasing incomes has been laid out," said Hasan Ademov from DRF-MRF.

The party's critical remarks were directed at the linking of salaries in certain sectors to the average wage.

The budget was also commented on by "MRF - New Beginning", who announced that they would support it at first reading, despite the fiscal risk created by the high level of expenditure.

"We have heard many times in the debate that this is the possible budget, that this is a budget that will help Bulgaria enter the Eurozone. However, for us, it is important that this budget be a working budget for the people, one that increases their incomes and enhances the competitiveness of the economy," said Elvan Gürkash from "MRF-New Beginning".

'MRF-New Beginning' welcomed the fact that taxes would not be increased and explained that they would present their own proposals between the two readings. They also pointed out that there are indeed many unrealistic elements in the budget.

As expected, "Vazrazhdane" announced that they would not support the budget.

"This budget is fake; it is not a compromise. It is burying Bulgaria. With false data from the National Statistical Institute. You say this is a compromise budget, but this has nothing to do with the truth," commented Kostadin Kostadinov from "Vazrazhdane".

As expected, GERB-UDF supported the budget, but they criticised the fact that there was no analysis of the budget's execution from the previous year, which would have allowed the new budget to be aligned with it.

"Regarding the budget, it can be said that there is some continuity after a period of chaos with this government; it's time for order in the budget. All sectoral policies are somewhat protected, but the lack of an analysis prevents us from creating a much better budget," commented Lyuben Dilov from GERB-UDF.

The party said that changes to the budget could be expected between the two readings.

Sharp criticism of the budget came from "We Continue the Change." Former Finance Minister Asen Vasilev explained that the party had stated before the presentation of the draft budget that they would support it if it met the requirements for euro adoption and if there were "no big mistakes" in the budget. However, they were disappointed.

"The real problem with this budget is that it contains not only major mistakes. The real problem is that this budget is scandalous," commented Asen Vasilev from WCC-DB.

According to Vasilev's calculations, the government is taking on 7 billion more debt than necessary. The planned new debt in the budget is 18.9 billion BGN.

In response, the finance minister accused Asen Vasilev of poor fiscal management in the past.

"This is a legacy from you, you have been in power for four years, we have been in power for one month. You just want to manipulate the National Assembly and mislead the people, but it won't work. This is the mirror in which you should see yourselves," said Petkova.

After the minister's statement, Vasilev tried to respond but was not allowed a personal explanation. Kostadin Angelov, a member of parliament from GERB-UDF, then presented a list of Asen Vasilev's alleged violations. After exchanged remarks, which also included Kiril Petkov from WCC-DB, the MPs warned that they would sue each other.

The budget was also supported by "There are such people". The party strongly criticised Asen Vasilev and his financial policies.

"This is not the budget we would want, because we are a right-wing party, and it is quite generous. But this budget is like this because it is possible. Since Asen Vasilev's arrival, the budget has gone into deficit. The unconsidered increases in pensions, the minimum wage, and the average wage have led to high inflation and the state's inability to pay," commented Toshko Yordanov from "There is such a People".

The deadline for proposals for changes to the budget, as with previous smaller budgets, was once again reduced to 5 days.