National Council for Tripartite Cooperation did not reach agreement on draft budget for 2025

The National Council for Tripartite Cooperation, which includes representatives of the trade unions, employers and the government, on December 11 did not reach an agreement on the texts on the draft state budget.

Caretaker Prime Minister Dimitar Glavchev, Deputy Prime Minister and Finance Minister Lyudmila Petkova and Energy Minister Vladimir Malinov held discussions with employers and unions regarding the introduction of a new tax on underground resources.

Employers estimate that this tax will make the industry uncompetitive and take nearly 1 billion leva from it. A protest against the introduction of the levy was organised this morning by the CITUB and "Podkrepa" trade unions in front of the Council of Ministers.

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The National Council for Tripartite Cooperation held an extraordinary meeting on December 11, to discuss Bulgaria's public finances for 2025, including National Health Insurance Fund Budget Bill, the Public Social Insurance Budget Bill and the State Budget Bill.

The draft State Budget was published by the Finance Ministry on Tuesday.

The projected revenue for the next year is set at 92.5 billion BGN, while expenditures are expected to reach 98.9 billion BGN. This results in a budget deficit of 6.4 billion BGN, or 3%, which aligns with the requirement for Bulgaria's entry into the Eurozone.

The budget also includes provisions for increasing the minimum contributory income to 1,077 BGN starting January 1, 2025, including for agricultural producers. The maximum contributiry income will be set at 4,130 BGN. These calculations are based on an anticipated economic growth rate of 2.8% and a declining average annual inflation rate of 2.4%.

The draft budget includes provisions for a one-time tax amnesty, increases in excise duties on alcohol (including beer) and cigarettes, as well as the introduction of a new tax on the extraction of underground resources. This particular amendment has been met with opposition from both employers and unions. According to their calculations, the measure would take 900 million BGN from the mining sector, rendering it uncompetitive. Miners fear that this could result in job losses within the industry.

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