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Finance Minister: The draft budget for 2025 will have a deficit of 3%, financial stability is most important

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людмила петкова проектобюджетът 2025 дефицит финансовата стабилност важна
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The 2025 budget law will have a deficit within 3%, in accordance with the Public Finance Act, said caretaker Deputy Prime Minister and Minister of Finance, Lyudmila Petkova, during a briefing at the Council of Ministers on December 4.

"We are holding meetings regarding the proposed measures with employers' associations, trade unions, and the National Association of Municipalities in the Republic of Bulgaria, as well as with some political parties represented in the 51st National Assembly. This was necessary because, during the analysis of the projected revenues and expenditures for 2025, it was found that the expenditures under existing policies and legislation exceed revenues by BGN 18 billion. These revenues were calculated based on macroeconomic indicators and current policies. As a result, measures had to be identified in terms of both revenues and expenditures to present a budget with a 3% deficit," Petkova explained.

"The financial stability of the state is the top priority for the caretaker government. In this regard, we have made every effort to propose a budget that ensures the country's financial sustainability," she assured. "Some of the revenue-raising measures, after discussions with employers, trade unions, and parliamentary parties, will not be submitted. One such measure is the proposed increase in social security contributions, which will not be tabled," the Finance Minister added.

According to her, some of the revenue-generating measures will include a windfall tax on excess bank profits, a tax on natural resources, a planned increase in excise duties on tobacco, tobacco products, and alcoholic beverages, as well as proposals to abolish reduced VAT rates.

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