site.btaParliament Adopts 2018 Budget Framework

Sofia, November 30 (BTA) - At a sitting that lasted over 18 hours until the early hours of Thursday, the National Assembly adopted on second reading the budget framework for 2018 and part of the state budget by sectors. The voting on the 2018 State Budget Bill continues at Thursday's sitting.

Revenues, aid and donations worth 23,515,773,100 leva are budgeted in the common budget framework. Revenues from taxes are set at just over 21 billion leva. Expenditures are set at 11,923,291,500 leva, with current expenditures (inclusive of those for personnel) at nearly 9.5 billion leva.

The total transfer sum from the budget is 11,100,063,700 leva.

In 2018, the State will allocate 3,264,075,100 leva to municipalities, 4,495,090,400 leva to public social insurance, and 1,286,186,000 leva to the National Health Insurance Fund, inclusive of a 24 million leva transfer from the Health Ministry. Bulgaria's contribution to the EU will be just over 1 billion leva.

Over 1 Billion Leva for Defence Ministry

The Defence Ministry's expenditures are set at 1,193,319,000 leva, current expenditures at 1,137,955,000 leva, of which 911,730,000 leva for personnel, and subsidies and other current transfers at 2,528,000 leva.

A total of 1,116,953,000 leva will be allocated for defence capabilities and 76,366,000 leva for Alliance and international security policies.

According to the opposition, this budget will not solve the problem with the vacant permanent positions in the army.

Milen Mihov MP of United Patriots underscored that the main parameters of the Defence Ministry's budget have been increased, for example the expenditures for defence, and next year 1,300 persons will be appointed out of the 5,000 needed to cover the existing vacant permanent positions.

By 55 Million Leva More for Personnel in Interior Ministry's Budget

The Interior Ministry's budget of 1,296,400,000 leva has by 62.8 million leva more total expenditure and by 55 million leva more expenditure for personnel (1,161,763,000 leva) compared to the 2017 budget.

In the words of Ivan Ivanov MP of BSP for Bulgaria, this budget does not meet the Interior Ministry personnel's expectations at all.

600 Million Leva for Education Ministry

The Education and Science Ministry's expenditures are set at 584,470,500 leva and current expenditures at 573,365,500 leva, of which 322,996,200 leva for personnel, inclusive of 28,774,100 leva for personnel without delegated budgets.

The adopted provisions of the State Budget Bill envisage a gradual increase of teachers' salaries in the pre-school and school education system in the 2018-2020 period, so that these can become two-fold higher in 2021.

As of next year, the delegated budgets system will be changed so that funding can be tied to education quality. Financing will no longer depend solely on the number of children and pupils but also on the number of a school's classes within each grade, the region's specifics and, in the longer term, the quality of the education process.

The transfers to the Bulgarian Academy of Sciences and the public higher educational establishments are set at 83,075,800 leva and 414,943,300 leva, respectively.

By 8.1 Million Leva More for Personnel in Health Ministry's Budget

Next year, the Health Ministry will have 215,919,100 leva for personnel, up by 8.1 million leva from last year's expenditures at the expense of capital expenditures, which are set at 11,900,000 leva for 2018.

Voting against these provisions of the 2018 State Budget Bill, Socialist MP Zhelyo Boychev commented that there is a refusal to reform the Health Ministry. The number of areas in the country where Bulgarian citizens are not able to receive medical care will become ever higher, he said.

Additional Resources Allocated for Salaries in Culture

The State will allocate additional 254,000 leva for salaries in the area of culture next year, with the expenditures for personnel in the Culture Ministry's budget being set at 101,727,300 leva.

A total of 151,366,900 leva will be allocated for policies on the creation and popularizing of contemporary art in Bulgaria and abroad and for access to quality art education, 18,949,800 leva for the policy on preserving movable and immovable cultural heritage, and 4,965,700 leva for the Administration budget programme.

Judiciary's Budget

Revenues, aid and donations worth 116 million leva and expenditures of 591,120,000 leva, of which 575,650,000 leva current expenditures, are budgeted for the Judiciary. A total of 32,487,500 leva will be allocated to the Supreme Judicial Council, 17,562,700 leva to the Supreme Court of Cassation, 14,760,500 leva to the Supreme Administrative Court, and 221,715,500 to the prosecuting magistracy. Courts will receive 294,188,500 leva from the executive budget.

Parliament's Budget

The National Assembly's revenues for 2018 are set at 1,500,000 leva and its expenditures, at 62,150,000 leva, of which current and capital expenditures at 59,196,000 leva and 2,454,000 leva, respectively. A total of 500,000 leva are budgeted as a reserve for unforeseen and/or urgent expenditures.

Parliament Rejects Socialists' Proposal for Higher Presidency Budget

The MPs rejected a proposal by BSP for Bulgaria that the Presidency's budget for 2018 be increased by 330,000 leva. The majority voted in favour of expenditures to the amount of 6,668,000 leva, of which 6,468,000 leva for current expenditures, inclusive of 4,536,000 leva for personnel. The presidential administration will have 200,000 leva for the acquisition of long-term assets and repair works next year.

Parliamentary Groups' Reactions

BSP for Bulgaria described the 2018 State Budget Bill as a budget of Bulgaria's missed year, spending without a clear target and result, and servicing of corporate interests. "We continue to be the only European country to tax minimum incomes; if a progressive tax is introduced, as proposed by the Left, over 1 billion leva of available revenue will remain in citizens' hands," Zhelyo Boychev said. He accused the powerholders of purposefully underestimating his party so that they could later declare over-collectability. Reacting to this statement, Stanislav Stanilov MP of United Patriots recalled that it was the BSP that introduced the flat tax.

BSP leader Kornelia Ninova said that GERB is making a budget for buying political influence. In her words, the ruling party is "pouring money" through ministerial decrees, which is a "wrong model". Money are also being poured into systems that have been proven to be non-working, such as education and health care. That is why the Left propose more money but for reformed systems, i.e. that hospitals should not be companies and that money in education should not follow the pupil.

GERB Floor Leader Tsvetan Tsvetanov said in reply that if his party had ruled without interruption in the last eight years, Bulgaria would have higher economic growth and lower deficit. "In two out of these eight years, you [the BSP] were in power and you took us eight years back; we do not have a formula for dividing municipalities into 'ours' and 'yours'," he underscored.

Yordan Yovchev MP of the Movement for Rights and Freedoms said that unlike last year, his party sees a well-planned GDP and decently planned revenues. "Nevertheless, we think that the revenues are conservatively planned, but the biggest trouble lies in the expenditure side of the budget," he added. According to Yovchev, the expenditures should have been directed at reforms so that the economic cycle could be properly used. In his words, if the growth is directed through investments, and not consumption, it could be sped up to 6 or 7 per cent, but there are no serious steps to direct the economy towards bigger investments, either internal or external.