The Supreme Court of Cassation opposed measures affecting the judiciary envisaged in the draft state budget, while the Fiscal Council criticized the planned windfall tax and the increase in public debt.
Supreme Court of Cassation Chair Galina Zahарova and her deputies sent a position to the National Assembly, the prime minister, the finance minister and the justice minister. The document was endorsed by 159 court employees.
Supreme Court of Cassation objects to restrictions
The position states that the measures envisaged will restrict the budgetary autonomy of the judiciary and reduce the staffing and administrative capacity of judicial bodies. According to the Supreme Court of Cassation, this is being proposed without objective, transparent, proportionate and generally applicable rules.
This is the wording used in the position to describe the expected effect of the changes. The Supreme Court of Cassation draws particular attention to clothing allowances for court employees. Under the current rules, they may amount to up to two average monthly salaries in the public sector. The draft budget provides that these funds will not be paid, with an exception for robe allowances of up to 500 euros.
Serious objections have also been raised against the proposed changes to the social security regime for court employees.
Fiscal Council questions revenue estimates
The Fiscal Council criticized the one-off windfall tax, from which the government expects 800 million euros in revenue next year. According to the council, the measure is insufficiently justified because the sectors affected, the number of liable companies and the methodology for calculating the amount have not been clearly specified.
A 33% tax is proposed on the windfall profits of banks, insurers, food retailers with annual turnover exceeding 5 million euros, telecommunications operators, payday lending companies and currency exchange offices. The Fiscal Council’s own simulations show that the actual effect could be around 211 million euros.
The council also warns of possible legal disputes because of the retroactive application of the tax base. At the same time, the institution questions the sustainability of public finances and the realism of some of the projected revenues.
Debt and interest payments rise through 2029
According to the Fiscal Council’s assessment, public debt will remain below the Maastricht threshold of 60% of gross domestic product, but is expected to reach around 37% in 2029.
More significant is the increase in interest payments. They are expected to reach nearly 2.5 billion euros in 2029 — almost three times more than in 2025. According to the Fiscal Council, this will increase pressure on the budget and the country’s vulnerability if financing conditions on international markets change.
Sources: bnrnews.bg