MPs Approve at First Reading Changes Extending Last Year’s State Budget

Lawmakers in Bulgaria on March 12 approved at first reading amendments to the law on state revenues and expenditures that extend last year’s state budget indefinitely.

The proposed changes would allow municipalities to use part of their own revenues and provide funding for the SAFE instrument linked to the modernisation of the Bulgarian Armed Forces.

The texts adopted today are not final. Additional proposals are expected to be submitted between the first and second readings before the bill returns to the plenary chamber for a final vote.

Photos by Dessislava Kulelieva, BNT

The draft law would allow municipalities to spend more funds than they have been permitted to use since the beginning of the year.

Georgi Klisurski, caretaker Minister of Finance, said:
“What the Council of Ministers of Bulgaria is proposing is that municipalities should be allowed to spend up to the total amount of their expenditures from last year, plus the revenues they have collected themselves.”

However, local authorities say the proposal does not go far enough.

Silvia Georgieva, Executive Director of the National Association of Municipalities in the Republic of Bulgaria, said:
“It would be reasonable to accept calculations based solely on our own revenues if Bulgaria were not such a highly centralised state and if municipalities’ own revenues were not so limited.”

Members of Parliament on the budget committee therefore agreed that amendments should be introduced to the proposed provisions.

The Ministry of Finance of Bulgaria has also proposed that funding under the SAFE instrument for the modernisation of the Bulgarian Armed Forces should not be delayed.

Georgi Klisurski, caretaker Minister of Finance, said:
“The Council of Ministers of Bulgaria will take steps to conclude an agreement with the European Commission. Following ratification, it is possible that the Commission will provide an initial 15% advance payment.”

This advance is expected to exceed €500 million.

Atanas Zapryanov, caretaker Minister of Defence, added:
“At the moment there is a kind of race between member states — who will be the first to conclude the loan agreement, receive the advance and begin negotiating contracts.”

Lawmakers are due to vote on the bill extending last year’s budget at first reading tomorrow. Proposed amendments will be accepted until Tuesday, with the final vote scheduled for Wednesday.

Georgi Klisurski, caretaker finance minister: "The Council of Ministers will take action to conclude a contract with the European Commission and upon subsequent ratification it is possible that the European Commission will allocate 15% of the initial funding."

This will amount to more than half a billion euros.

Atanas Zapryanov, caretaker defence minister: "At the moment there is a competition between the member states - who will be the first to sign the loan agreement and get the advance and start negotiating."

Tomorrow, lawmakers will vote on the first reading of the extension law. Proposals for changes will be accepted until Tuesday, and Wednesday will be the final vote.