"Progressive Bulgaria" Proposes Three Budget Measures, Including Reduction of Party Subsidy

There is an urgent need for funding in order to prevent harm to municipalities and businesses, and to avoid the loss of public funds, Konstantin Prodanov, MP from Progressive Bulgaria and chair of the ad-hoc parliamentary committee on budget and finance, said at a briefing in the National Assembly on June 1.

"Progressive Bulgaria" proposes three budget measures aimed at saving money from the state budget.

Konstantin Prodanov, Progressive Bulgaria: “All the measures we are proposing have been coordinated with the Ministry of Finance. We are putting them forward because time is pressing; if they are channelled through the Ministry of Finance, the process takes longer. Each measure has an estimated fiscal impact. The idea is that little by little, a significant effect will be achieved and meaningful savings will be made.”

Prodanov said that the first measure is a reduction in the party subsidy per vote.

Konstantin Prodanov, MP from Progressive Bulgaria: “A reduction in the party subsidy – at present it stands at €4.09 per vote. We propose lowering it to €3 per vote. The aim, alongside fiscal savings, is also to set an example. As the largest parliamentary group, we will be the most affected.”

As a second measure, Prodanov announced the raising of new state debt.

Konstantin Prodanov, Progressive Bulgaria: “The second proposal is a change to the ceiling on state debt. At present, the state may only incur debt in order to refinance existing obligations. This has already been done within the current year. Our proposed change is to allow the Council of Ministers and the Minister of Finance to access additional borrowing of up to €3.8 billion, which would be used for advance financing of projects under the Recovery Plan. There is an urgent need for funding in order to prevent harm to municipalities and businesses and to avoid the loss of funds.”

“Progressive Bulgaria” has also reviewed the Covid supplements for pensioners. These will not be abolished, but neither will they be uprated, and they will not apply to newly granted pensions.

Konstantin Prodanov, MP from Progressive Bulgaria: “Third – Covid supplements to pensions. At the height of the Covid crisis, a payment of 60 leva was approved – by its nature a temporary measure. It was a social measure, and incorporating it into the pension system was not the right approach. This sum cannot be withdrawn, but at the same time such payments undermine the contributory principle.

“The Covid supplement for current pensioners will be maintained and will not be changed, but from 1 June it will no longer be uprated under the Swiss indexation rule. In addition, for newly granted pensions, the Covid supplement will no longer be included.”

Finance Minister Galab Donev announced at his first briefing at the beginning of May that he expects the budget to be adopted by 1 July. However, the budget committee has issued less optimistic forecasts.

Stefan Belchev, MP from Progressive Bulgaria: “At the latest, by the beginning of August we will have a voted and promulgated budget in the State Gazette.”

The Ministry of Finance is expected by the end of the week to provide a more detailed justification of the proposed amendments, including the request for additional debt.