The draft budget must show not only what the government’s intentions are, but also how they will be implemented. This was stated by Lubomir Karimanski, a member of the BNB Governing Council, on the BNT program „More from the Day“, describing the document as a „budget of potential in question“.
According to him, the updated medium-term budget forecast shows efforts toward reforms through the figures included, but lacks sufficient clarity regarding the projects themselves. Karimanski pointed out that the reforms must be described as specific, costed and feasible commitments.
He expects the individual program budgets of the ministries and first-level budget spending units to be presented. In his view, the government must also publish in-depth sectoral analyses to make clear how the reforms are structured in each sector and on what basis the projected expenditures have been calculated.
Questions surrounding the deficit
Karimanski focused on the projected deficit of 3.5% for 2027. He distinguished between the deficit on a cash basis and on an accrual basis, noting that cash data do not always show the full extent of the commitments undertaken under the individual projects.
In his words, every figure in the budget presentation must be traceable in the updated medium-term budget forecast and in the consolidated fiscal program. He described the consolidation of expenditures as a necessary step and insisted that its effects be clearly shown in the budget documents.
Staff cuts and personnel expenditures
Karimanski also commented on the announced 10% cut in personnel expenditures in the public sector and government administration. According to him, this effect is not sufficiently clear in the updated medium-term budget forecast and in the consolidated fiscal program.
He pointed out that the documents appear to show, rather, a freeze in personnel expenditures and salaries. Therefore, he believes that Paragraph 6 of the draft budget, discussed by the tripartite council, should be revised.
In his statement, Karimanski said that the automatic mechanisms for increasing remuneration must be removed from the special laws or clearly regulated. He noted that, at present, there is no act providing for their removal from those laws, while the draft envisages maintaining net remuneration at the 2026 level.
According to him, social security costs will be included in the 5% increase for the respective sector, but this effect is not clearly set out in the consolidated fiscal program. Therefore, he called on the Ministry of Finance to show separately all the consequences of expenditure consolidation.