Council of Ministers approved draft Budget 2022 - what's in it?

The Council of Ministers adopted the budget for 2022. Prime Minister Kiril Petkov described it as a " budget of growth " and focused on capital investment, but also investment in people.

Forecasts show: GDP growth of more than one percent compared to last year, lower unemployment and rising inflation.

The minimum wage and the money for the second year of maternity leave will increase from BGN 650 to BGN 710 from April. And from July all pensions will be updated by 6.1%.

"Public sector investment will be 5.8% of GDP. The deficit without Covid measures will be only 2.5%, and with Covid measures it will reach 4.1%. What this means is that the deficit fully finances investments. This is unprecedented, 8.2 billion in capital investment," he said.

"For the first time we will have free-of-charge kindergartens and nurseries, starting in April. We will invest 70 million for new kindergartens - for their construction. We will invest so that teachers' salaries be 125% of the average salary. There will be no pensioner next year below the poverty line. All measures to support business, such as 60/40 job retention scheme, have been left for at least the next 6 months, as well as measures to support high electricity prices, "Petkov added.

After tensions arose last week between employers and the finance minister Asen Vassilev over his statements from the tripartite council that "incompetent employers who cannot pay so that there are no working poor" should be removed from the market, Prime Minister Petkov said today, January 31, that both the state and the private sector should work for productivity and efficiency.

"When we compare how productive our workers are, we see that their productivity is close to just over 50% of the European average, and how much is the current minimum wage - less than 27% of the European average. Our workers are more productive. than they are paid, " he said.

Once approved, the Council of Ministers will send the budget to the National Assembly.

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