Tripartite Council did not agree on the 2023 draft budget - what are the differences between the social partners?

The National Council for Tripartite Cooperation, which includes representatives of the trade unions, employers and the government, did not reach an agreement on the draft budget proposed by the caretaker government. Caretaker Minister of Labour and Social Policy, Lazar Lazarov, on April 27, commented that the trade unions' and employers' proposals on the budget plan require specific policies for which the caretaker government cannot take responsibility.

The social partners discussed the draft budget for 2023 as well as the draft budgets of the State Social Insurance and the National Health Insurance Fund.

"We did not agree on any of the proposed drafts. The proposals of the social partners contained proposals related to changing some parametres and implementing certain policies. We in the caretaker government maintain that this is the responsibility of a stable majority in the National Assembly and a regular cabinet. That is why the bills are in this form," Lazarov said.

However, the draft budget guarantees the social rights of citizens and provides for a 12% increase in pensions from 1 July, Lazarov pointed out.

Employers did not approve the budget plan because of the too high deficit - higher than can be allowed for a country that is heading towards the eurozone, said Tsvetan Simeonov, chair of the Bulgarian Chamber of Commerce and Industry. According to them, the planned 10 per cent increase in public sector salaries in departments where there was no increase last year, is not acceptable.

"Let's consider savings, optimisations and improvements in order to reduce spending, to avoid additional debts and increase in public debt," he urged.

The trade unions are also not happy with the projected increase in salaries in the budget sector, but not because of the costs associated with it, but because they believe it is insufficient.

According to CITUB trade union, the budget has the potential to simultaneously increase incomes and reduce the deficit, given good budget planning and political will.

"We have prepared a detailed statement for each sector, for each ministry - where there is underfunding. And we want the state to get back there. And the state is the horse that pulls the cart. The cart has been rocking for a year and a half, not because it is moving forward, but because it is standing still. My appeal to the 49th National Assembly is to listen to the demands for income policy," said Luboslav Kostov of CITUB.

Trade Union "Podkrepa" is demanding a 15-30% increase in wages in the budget sector. They propose the introduction of a 10% dividend tax rate rather than the current 5%. They also insist on progressive income taxation and a tax-free minimum on the minimum wage. According to them, the minimum wage should be raised to BGN 850.

"We understand that it is uncomfortable for the caretaker government to propose policies that it cannot then implement, but Bulgaria is in such a situation that urgent measures and policies are needed now," said Valeri Apostolov of “Podkrepa” trade union.

Caretaker Deputy Finance Minister, Lyudmila Petkova, clarified that there are proposed measures to the draft budget that would bring the deficit down to 3% if there is political will on the part of the 49th National Assembly.

"The draft budget is a mirror of the policies and decisions adopted by the previous parliaments, which have a negative impact on both the revenue and expenditure parts of the budget," said Lyudmila Petkova, Deputy Finance Minister.