Council of Ministers proposes a special interim budget until the new one is adopted

Just hours before the New Year, the government is proposing a new bill for Parliament to vote on, which would remain in effect until the new state budget for the upcoming year is passed. This is intended to ensure the payment of pensions and all social payments at the same levels as in December of this year.

However, civil servants earning the minimum wage will not see an increase as of January 1. Instead of the planned 1,077 BGN, they will continue to receive 933 BGN. In the private sector, the wage increase will be mandatory due to a government decree. The two wage levels will equalize once the 2025 budget is approved.

The government’s proposed "Revenue and Expenditure Bill" is designed to function until the 2025 state, health insurance fund, and state social security budgets are adopted.

"Budget laws will not be passed by the end of the year, so the caretaker government is taking responsibility to prevent chaos and ensure there is a legal framework," said Lyudmila Petkova, Deputy Prime Minister and caretaker Minister of Finance.

"This way, with the decision of the Council of Ministers, we ensure the normal functioning and expenditure. When expenditures exceed revenues, prioritization is necessary," explained caretaker Prime Minister Dimitar Glavchev.

The projected expenses will not be fully covered by revenues, which is why the caretaker government decided not to extend the current state budget law.

"The bill provides for prioritization of expenses. Priority will be given to pensions, social benefits, and wages, while other expenses will be adjusted based on the remaining revenues," Petkova added.

VAT on bread and restaurant services will return to 20% since the reduced rates are set to expire at the end of this year under the current budget. There will be salary increases for the Ministry of the Interior, the Ministry of Defense, and the education sector.

"People will not be left without their wages, pensions, or social benefits," assured the Deputy Prime Minister.

The government hopes the bill will be quickly passed by parliament. The review of the state budget is scheduled to begin on January 7 in the relevant parliamentary committee.

"We hope that the National Assembly will eventually start functioning. The Council of Ministers has submitted 32 bills, while over 50 have come from Members of Parliament, and the number of adopted laws in the last two months since the elections is zero," commented Dimitar Glavchev.

The text of the new bill has not yet been published.