"Progressive Bulgaria" is preparing a reduction in the party subsidy, an increase in the state debt ceiling and changes related to pensions, MP Konstantin Prodanov announced at a briefing.
"You know, we currently do not have a current budget for 2026. We are currently in the conditions of an extension budget. A few days ago, we introduced a change that was related to the need for the minimum pensions for insurance length of service and age to be updated according to the Swiss rule, because this was not provided for in the extension law that was in force until now. This was the first change we introduced. Now we are between the two readings. As a result of the analysis currently being conducted by the Ministry of Finance on the state of the country, we are proposing several more changes. They will not be all. What we will do in the budgetary sphere is not limited to these three changes, but we need to make these three now," said Prodanov.
"The first is related to a reduction in the party subsidy per vote. Currently, it is 4.09 euros. We propose that it be reduced to 3 euros per vote, and this change will come into effect from the day of the oath of the new parliament, that is, from April 30 of this year. The purpose of this change is, along with fiscal economy, to set an example for the political class at a time when the fiscal situation is undoubtedly difficult. You know, there were indications in this regard last week from the European Commission. Severe restrictive measures are required. We must set an example with ourselves, and for this we are starting from something that has long been a source of concern to ordinary people - party subsidies. It should be emphasized here that we, as the largest parliamentary group, will also be the most affected. But ultimately, when we want people to tighten their belts, we must start with ourselves and set an example. So this is the first change that we propose and will be considered tomorrow in the Commission", Prodanov pointed out.
"Secondly, we propose a change in the ceiling of the state debt. I have little information about the current situation under the terms of the current extension law. Under Art. 87, para. 2 of the Public Finance Act, the state can assume debt only to refinance old maturing obligations. This has already been done this year. There were about one billion and four hundred million old maturing obligations. Debt in the form of government securities for the same amount has already been drawn against them. Neither the extension law in its current form nor the Public Finance Law provide for the state to resort directly to debt financing to cover current or investment needs. So the change that we are proposing, which is to introduce the possibility for the Council of Ministers and the Ministry of Finance to resort to additional debt financing in the amount of 3.8 billion euros, and this amount will be used primarily for advance financing of projects under the Recovery and Resilience Plan. For your information, the vast majority of payments under the Recovery and Resilience Plan are concentrated in this year. For the eight months until August 31, when all payments must be completed in order for us to claim reimbursement, payments of 4.4 billion euros are to be made. Here I will only say that the caretaker minister, Mr. Klisurski, when we asked him earlier on this issue, he indicated that half a billion euros had already been paid for some of these projects, and it turns out that this is not actually the case. In this sense, there is a very urgent need for strong state financing of these projects, so that municipalities do not suffer, businesses do not suffer and we do not lose funds. These funds will be refunded to us. Of course, assuming that all the necessary conditions are met and there are no violations in the projects. The fourth payment should arrive by the end of July. The fifth payment should arrive by the end of December. We need to refinance them, as they say. The main purpose of this new debt ceiling of three point eight billion is for this. If three point eight billion seems like a large amount, I will remind you that last year the debt ceiling was ten billion and it was fully utilized by the then rulers, "Prodanov emphasized.
"The third change is related to the so-called Covid-supplements to pensions. You know that at the height of the Covid crisis, about sixty leva were voted, later they changed, later they returned to sixty. And this was essentially a temporary measure, or at least it should have been, and it was social in nature, it was not an insurance payment, and in this sense, initially including it as part of the pension may not have been the most correct approach. We are aware that there is no way, especially from the most vulnerable groups, such as pensioners, to have this amount taken away, but at the same time it is a fact that this type of payment, which is social in nature, violates the insurance nature of the system, where there should be a direct relationship between the insured contribution and the rights you receive. And in fact, violating it with such initiatives leads to many people losing trust in the system itself and not securing their real income. So what do we propose? The Covid supplement for current pensioners is retained. It will not be changed, but from July 1 it will no longer be updated. Only the part with the Covid supplement. It will not be updated according to the Swiss rule, because its idea is to update pensions as they are based on insurance length and age, not social payments. Also, for newly granted pensions from July 1 onwards, the Covid supplement will no longer be included, because, again, as we said, it was a temporary crisis measure," said Prodanov.
He explained that "the topic of motherhood is not, has not been opened, has not been discussed, is not about to be opened or discussed. Neither the conditions for maternity leave, nor the funds granted, nor the term will change in any way.
"Of course, we will offer additional incentives later in time for those working mothers who want to return to work before the end of their legally regulated maternity leave. We will give them the opportunity to do so under even better conditions than those that currently exist. But no changes are planned in terms of the term and conditions," said Prodanov.
"No, we will not raise taxes. And no, the social security, the maximum social security threshold is not a tax," added the MP from "Progressive Bulgaria".