Employers, trade unions and government discuss Budget 2020

The three main budget bills - for the national budget, social insurance budget and National Health Insurance Fund budget were discussed by the Bulgarian government, trade unions and nationally representative employer organizations at a meeting of the National Council for Tripartite Cooperation on October 30.

Unions and employers supported different parts of the budget and rejected others.

Businesses asked for more buffers in view of the expected global economic downturn, and asked for scholarships for subjects, which there would be a shortage of workforce. Trade unions, on the other hand, see the increase in income as insufficient and demand tax reform.

The finance minister rejected the idea of changing the tax policy. The definition that he himself gave to the budget was - “a budget without surprises”.

Increase of salaries in the budget sector by 10%, of teachers and other pedagogic staff by 17%, the minimum wage will become BGN 610 from January 1st. The aim is the average salary to reach BGN 1,400.

More than BGN 610 million is envisaged for education next year, half of which is intended for the increase of teachers' salaries, which should be doubled in two years compared to the levels in 2017.

More than 1 billion and 900 million BGN are foreseen for defence as Bulgaria is increasingly getting closer to NATO's requirement for defence cost to reach 2% of the country's GDP.

Almost half a billion BGN have been envisaged for healthcare next year. More than half of this sum will go to the health fund budget, 10 million for emergency care and 30 million for a new children's hospital.

Budget revenue and expenditure are offset to keep it balanced. Nearly 37% of the country's GDP will be redistributed through it this year.