The Minister of Finance presented the final parameters of the 2025 budget, which will be voted by the Ministerial advice and proposed to the deputies.
"For us, it is important that there is no increase in the main taxes - VAT, corporate tax, personal income tax and insurance. They have a direct impact on either inflation or economic development. That's why we offer the measures with the least negative effect on the country", said Lyudmila Petkova.
"It was found that the costs of the current policies and legislation are 18 billion. more than revenue. Measures were taken in this regard. Part of the revenue measures will not be imported, for example - the one to increase the insurances. We will propose a tax on the excess profits of the banks, a tax on underground wealth, the two tax amnesties - one for declared but not paid in time taxes and insurances, the other - for undeclared income. We are also discussing an increase in excise duty on tobacco, tobacco products and alcoholic beverages. We offer the growth for 2025. and 2026 to be purchased from January 1. Regarding alcohol and beer, a 10-15% increase is planned, which will not have such an impact on the final price," Petkova noted.
She assured that the deficit will be within 3%. "We are holding meetings in connection with the targeted measures. Financial stability is the most important thing for a caretaker government. The budget will guarantee sustainability", the minister announced.
According to Petkova, several measures have been commented on regarding expenses. "We discussed part of the growth of the remunerations laid down in the laws for the Ministry of the Interior, Ministry of Defense and secondary education, to be postponed by 6 months to 1 year. After consultations, we decided to provide them in an amount and in a manner voted by the National Assembly. A 10% income policy and an update of pensions according to the Swiss rule are also planned," Ludmila Petkova explained.
The minister explained that an analysis of the capital program was made. "Funds will be provided to complete the projects started. It will include, in addition to this money, money for new projects, but it will already be structured along three main directions. First - administrative costs related to necessary current payments for the ministries. Second - for IT systems, and third - for national strategic projects. We anticipate that the budget will be discussed next week at a Tripartite Council with the social partners and will be adopted by the Council of Ministers by the end of next week and submitted to the Parliament," the finance minister also indicated.
Furthermore, Petkova indicated that the draft budget will also include a proposal in connection with the project to create a single revenue agency.
The Minister of Finance specified that the Christmas supplement to pensions, announced at today's government meeting by Prime Minister Glavchev, is intended only for pensioners on the poverty line - up to BGN 526. "The necessary financial resource is currently being assessed, as it is not foreseen and must be secured through cost restructuring. We will be ready in a few days so that the BGN 100 supplements can be provided in time before the holidays. A thorough check will be done to give the funds to those most in need. There will be no supplements for pensioners with side income - for example, rent or salary of a working pensioner,' she revealed.
Next week, the draft budget is expected to be discussed with unions and employers, accepted by the cabinet and submitted to parliament.