After an extensive session in the Bulgarian National Assembly, MPs approved the state budget for 2025 following a lengthy debate and multiple votes. The budget, which does not include tax increases, projects a deficit of 3% of GDP and allows for new government debt of up to BGN 18.9 billion. Revenues are set at BGN 90 billion, while expenditures are expected to reach BGN 96 billion, leaving a budget shortfall of BGN 6 billion.
One of the key provisions in the budget is a minimum wage increase to BGN 1077. Additionally, salaries in the security sector will see a 50% rise, while wages in the public sector will increase by 5%. Teachers’ salaries will be set at 125% of the national average. Parliament also upheld the current VAT rate of 20% on bread, flour and restaurant services.
The newly formed parliamentary group DPS-New Beginning successfully pushed through a proposal to establish a state-owned retail chain aimed at selling products at a reduced price of up to 10%. BGN 10 million has been allocated for this initiative. Meanwhile, proposals from “We Continue the Change – Democratic Bulgaria” (WCC-DB) to reduce debt and increase funding for Sofia were rejected. WCC-DB MP Asen Vassilev criticized the budget for significantly increasing expenditure, arguing that it would result in a debt surge greater than the combined increases of the past three years.
The approval process followed a revised parliamentary procedure, with all proposed amendments being read late at night and then discussed the following day in a randomized order. This led to a chaotic session where MPs voiced opinions on a wide range of topics, from healthcare and infrastructure to salaries and energy policy.
GERB MPs defended the budget as realistic, with Branimir Balachev acknowledging that while it might not be ideal, it was the best possible solution under current circumstances. The government emphasized that healthcare and insurance payments alone would see an increase of BGN 5.5 billion compared to the previous year.
Parties like “There Is Such a People” (TISP) and “Revival” expressed concerns over previous budget deficits, arguing that financial mismanagement in recent years had left little room for maneuver. TISP’s Toshko Yordanov stated that while labor union demands were fair, they were impossible to fully implement due to the financial constraints inherited from previous budgets. “Revival” MP Peter Petrov questioned specific expenditures, particularly in the judiciary sector.
The newly formed party “Greatness” opposed the budget, arguing that it lacked long-term vision and effective measures against corruption. MP Maria Ilieva criticized the plan as a temporary solution to immediate financial gaps rather than a strategic approach to Bulgaria’s economic challenges.
The Movement for Rights and Freedoms (DPS-New Beginning) also cautioned against excessive amendments, with Yordan Tsonev warning that shifting funds between different budget categories without thorough discussion could lead to unintended consequences. Meanwhile, “MECH” MP Krasimir Manov criticized what he perceived as financial loopholes that could lead to mismanagement.
At the end of the session, Budget Committee Chairman Delyan Dobrev proposed canceling all amendments adopted during the voting process, adding another layer of controversy to the budget’s finalization.
The newly approved budget will come into force once it is published in the State Gazette. (Novinite)