site.btaParliament Passes 2017 Public Social Insurance Budget Framework

Parliament Passes 2017 Public Social Insurance Budget Framework

Sofia, November 30 (BTA) - Bulgaria's National Assembly Wednesday voted, 112-59 with 10 abstentions, to adopt conclusively the consolidated 2017 public social insurance budget. The revenues and transfers and the expenditures were set at 10,375,563,800 leva, even though the Budget Committee on Tuesday rejected a framework fixing the revenues and expenditures at this amount.

After a debate, two motions by the United Patriots for a higher minimum pension were defeated by the majority. One motion was for increasing the minimum monthly pension to 200 leva (from 161.38 leva now) and adjusting all pensions for the growth of the contributory income for 2012 which, in the proposers' estimates, would set the public purse back by 717 million leva. The second motion called for raising the minimum pension to 300 leva, which would cost 807 million leva, but the money would last for half a year only.

Ultimately, the MPs approved public social insurance revenues and transfers for 2017 totaling 10,375,563,800 leva. Of these, revenues from social insurance contributions amount to 5,614,738,000 leva, non-tax revenues to 38,315,000 leva, revenues and income from property at 6,840,000 leva, and proceeds from fines, penalties and default interest at 5,200,000 leva.

The expenditures and transfers of the National Social Security Institute for 2017 will aggregate 10,375,563,800 leva, of which 8,936,300,000 leva will be spent on pensions.

Parliament adopted on second reading the budget of the Pensions Fund by revenues and transfer of a total amount of 3,737,277,500 leva. The social security revenues are 3,736,627,400 leva, of which 3,736,627,400 leva will come from contributions.

The MPs also adopted the budget of the Pension Fund by expenditures and transfers of the amount of 7,815,277,200 leva. Of these, 7,814,670,100 leva will go for pensions and 607,100 leva for welfare benefits and compensations. The deficit of the Pensions Fund budget is minus 4,077,999,700 leva.

The minimum pension for length of service and age in the period from July 1 to December 31 will be 165.25 leva, according to texts of the State Social Security budget for 2017 adopted by Parliament on second reading.

In the period from January 1 to June 30 the minimum pension will keep its level of 161.38 leva.

The MPs also changed the percentage of each year of length of service in the pension formula from 1.1 per cent to 1.26 per cent as of next year. They turned down a proposal of ABV to increase the percentage up to 1.2 per cent.

The maximum contributory income will keep its level of 2,600 leva.

The minimal monthly amounts of the contributory income of self-employed persons in accordance with the contributory income for 2015 are as follows: for income of up to 5,400 leva - 460 leva; from 5,400.01 leva to 6,500 leva - 500 leva; from 6,500.01 leva to 7,500 leva - 550 leva, above 7,500 leva - 600 leva.

The minimum contributory income for registered farmers and tobacco growers remains at 300 leva. The MPs turned down a proposal of ABV for a maximum contributory income of 3,000 leva.