Bulgaria’s government approved the three main budget bills for 2020

Bulgaria’s government on October 31 approved the bills for the three state budgets for next year - the national budget, social insurance budget and National Health Insurance Fund budget. Wage increase is envisaged in the budgetary sector, education and healthcare.

The budget preserves the current government policy, both in terms of taxes and social payments. It is is balanced, ie. revenues and expenses are equal. The areas of education, defence, health and raising incomes remain priorities.

The revenues that will be collected this year by the state are BGN 46 billion and 800 million. Most of them will come from taxes and mainly from VAT. In addition, a quarter will be provided through social payments. In 2019 and 2020, the basic tax rates will remain unchanged, i.e. 20% VAT and 10% corporate and income tax. There will also be no change in social security contributions: the health contribution will be 8%, the social security contribution will be 25%.

The minimum insurance threshold will be BGN 610 starting January 1 due to a rise in the minimum wage. The maximum insurance income will remain BGN 3,000, which will also preserve the pension ceiling of BGN 1,200.

Once the revenue has been collected, its distribution will begin.

Most of the budget will go to social and economic activities. Less than 5% is envisaged for healthcare. Almost the same amount will go for defence and security. 4% will be allocated for education. The spendings for construction and environmental protection are below 2%.

Same as every year, about 1% of the budget is allocated as a contribution to the EU budget. The least money will be spent on culture, recreation and sports.

Boyko Borissov, Prime Minister: We are currently third in the EU in terms of low external debt. For the period of our governance, in the past 3 years, external debt has fallen by 31%. And from 28% by the end of the term in office, we have planned to further reduce it to 19.5% - below 20%. This shows responsibility for the next generations and that we spend as much as we earn. More money is being allocated for all sectors. Unemployment goes to a record 4%. In practice, those who do not work are the ones who do not want to work. More money is also available for culture, sports and infrastructure projects.

The three budget bills are expected to be submitted to Parliament today.

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