The 2027 Budget will have to bear the burden of accumulated commitments, unpaid expenses and decisions from previous years, Deputy Prime Minister and Finance Minister Galab Donev said while presenting the draft law at the University of National and World Economy.
According to him, three audit reports by the Bulgarian National Audit Office describe the financial legacy the government must address. The inspections outline a sustained increase in current spending and budget deficits amid slower revenue growth.
“The overall conclusion from these two inspections is that subsequent budgets are taking on the burden of irresponsible decisions from past years,” Donev said.Accumulated Commitments and Unpaid Expenses
The finance minister pointed to the audit of the Road Infrastructure Agency as an example of commitments being undertaken beyond the available resources. Some of the obligations were acknowledged late, while expenses already incurred remained unpaid.
The proposed measures include creating a comprehensive register of contracts, certificates, overdue payments and future payments. They also provide for limiting new commitments without multiyear financial backing, an independent review of implementation, a clear procedure for payments and a realistic investment programme.
The draft provides for a consolidation of the cash-basis deficit from 5.7% to 3.5% of gross domestic product.
Higher Incomes and Support for Families
The minimum wage is to increase from €620 to €660. Wages in the public sector are planned to rise by 5%, while teachers’ salaries will increase by 7.5%, with €170.5 million allocated for this purpose.
For the indexation of pensions from July 1, 2027, €552.6 million has been earmarked, while the ceiling for maximum pensions will rise to €1,874. The poverty line will be €443.
The draft provides €114.3 million for higher social benefits and €72.5 million for family benefits. Nine of the total 12 types of benefits will be increased, while the income thresholds for eligibility will also be raised.
The benefit for raising a child up to the age of two will increase to €450. Mothers who return to work before their child turns two will receive 75% compensation instead of the current 50%.
Tax relief for families is planned to amount to €5,000 for one child, €10,000 for two children and €15,000 for three or more children. The total value of the measures is €230.5 million.
Health insurance payments through the National Health Insurance Fund will increase by €493 million.
Discussion with Social Partners to Follow
The draft will be discussed with the social partners, and next Wednesday it is due to be considered by the National Council for Tripartite Cooperation. Donev described the proposed budget as a plan based on real financial indicators and a multiyear reduction of the deficit.
Sources: focus-news.net, dariknews.bg, taralej.bg