site.btaGovernment Will Not Withdraw 2017 State Budget Bill

Government Will Not Withdraw 2017 State Budget Bill

Sofia, November 14 (BTA) - The Bulgarian Government will not withdraw the 2017 State Budget Bill, the Finance Ministry Press Centre told BTA on Monday.

GERB weighed the option of pulling out next year's financial framework but opinions that the draft legislation should be voted through prevailed in the ruling party.

On the one hand, if the 2017 draft budget is not withdrawn, now that the Cabinet has resigned the bill could undergo numerous changes before its second reading, which would radically revise the framework. GERB believe it would be appropriate to enable the next powerholders to work under a financial framework of their own.

If next year's budget is withdrawn, the present law will remain in force. This means that the minimum wage will not be increased and the larger public spending on a number of sectors like education and health care will be blocked.

Unless a budget is adopted, the government will be able to spend up to one-twelfth monthly of the amount allocated or the previous year, which will restrict policy-making through the budget, economic expert Mika Zaikova explained on National Radio.

"Nothing of what is budgeted, small as it is, in the social sphere, will happen, including in the sphere of incomes. The minimum wage will remain at its 2016 level because there will be no adopted budget," Zaikova said.

As far as incomes are concerned, the employees of the most important sectors, like education and healthcare, will be worst affected.