site.btaMid-term Budget Outlook Envisages Balanced Budget, 610 Leva Minimum Wage in 2020

Mid-term Budget Outlook Envisages Balanced Budget, 610 Leva Minimum Wage in 2020

Sofia, May 12 (BTA) - The Finance Ministry has published a draft mid-term budget outlook for 2018-2020 which envisages a consolidated fiscal programme (CFP) deficit of 1 per cent and 0.5 per cent of the Gross Domestic Product in 2018 and 2019, respectively. A balanced budget is forecast for 2020.

The overall level of CFP revenue in the mid-term is expected to be in the range of 36.5-36.6 per cent of the GDP.

No major changes are planned in the main taxes and rates in the mid-term. The taxation system and the low share of GDP redistributed by the State will remain. The main goal of the tax policy in 2018-2020 is increasing tax collection and reducing the share of the grey economy, as well as the administrative burden and costs for the business and the members of the public.

In the insurance policy, the ratio of the contributory payments in the public insurance will remain unchanged. In 2018 the contributory payment in the Pension Fund of the public insurance will increase by one percentage point.

The following increases are planned of the minimum monthly wage, from the current 460 leva: to 510 leva as of January 1, 2018, 560 leva as of January 1, 2019, and 610 leva as of January 1, 2020.

The salaries of teachers in pre-school and school education are planned to be gradually increased to double their current size in 2021.

The government debt/GDP ratio is expected to drop and reach 22.3 per cent towards the end of the period, mainly due to settlements of maturing domestic debt.