Bulgaria adopts its first budget in euros against the backdrop of sanctions against "Lukoil", which will hit the state's revenues. Unions and employers jumped on the draft budget, whether it stimulates the gray sector, whether it reduces the number of people working in the open, is there any other solution besides raising taxes on workers. The PP leader and co-chair of the PP-DB coalition, Assen Vassilev, commented on the topic on Nova TV.
„We have not seen the budget. Two draft budgets have been leaked - for the National Social Security Institute and the National Health Insurance Fund, the real one is not yet. As far as we understand, after the initial reactions, it will be fundamentally rewritten. The minimum wage will be increased - it will be 620 euros, not 605 euros as it was. From there, the entire budget must be calculated from scratch. This MRL changes the revenues and expenditures in the state plan account, as well as consumption”, he explained.
Vassilev said that for him it was strange that the general parameters of the budget were not discussed, since it is not a matter of numbers, but of politics. It is necessary to be clear what the resource from taxes will be, what will come from Europe and how all this will be distributed, he added. And he emphasized that it is already clear that the budget will be delayed by at least a week.
According to Vassilev, the Ministry of Finance has taken the approach that everyone must agree with the proposed budget, but in a coalition government this is not works.
The MP said that the government will raise pensions as stipulated in the law – according to the Swiss rule. He also added that if the law is not followed, pensions will dramatically fall behind the normal standard of living and the number of people below the poverty line will increase.
Vassilev commented that the law on the minimum wage will also be followed, perhaps maternity leave will also be raised. However, he stated that what is missing in the budget is responsibility to business.
The MP said that the budget deficit cannot be hidden, since there are clear rules on what counts as such.
He was categorical that the social program must be designed in such a way that it does not burden the budget, but allows it to happen.
The case "Lukoil"
Vassilev said that „Lukoil” started paying taxes in 2021.
„Profit tax was raised to 50%, as the refinery is under sanctions. From 2021 to the beginning of 2024, over 1 billion in taxes were paid to the treasury. There is also VAT. If „Lukoil” stops operating, as it is under sanctions, this would lead to a huge economic collapse, which would hit the budget both because of the refinery and because of all other industries that will be affected,” he said. He added that he does not see the government making attempts to avoid sanctions.
According to him, a budget in euros and sanctions against „Lukoil” cannot lead our country to bankruptcy. But this could lead to very serious economic shocks and impoverishment of the state, stressed Vassilev.
The castling of the Speaker of the National Assembly
Assen Vassilev believes that the replacement of Natalia Kiselova as Speaker of the National Assembly was an “extremely humiliating scene” for her. “She was betrayed by her own party”, he added.
”What was seen publicly is that the castling is the price of the BSP remaining in power”, the MP also said.