site.btaNational Assembly Enacts 2016 Public Social Insurance Budget

National Assembly Enacts 2016 Public Social Insurance Budget

Sofia, December 1 (BTA) - Bulgaria's Parliament Tuesday adopted the 2016 Public Social Insurance Budget Act on second reading. Proposals of the opposition to increase social payments were turned down.

Public social insurance revenues are expected to total 10,048,408,400 leva, as the revenues from contributions are budgeted at 4,971,506,300 leva. The consolidated public social insurance budget is expected to show a deficit of 4,719.2 million leva for 2016, which is supposed to the financed by an additional transfer from the State budget

Public social insurance expenditures amount to 10,046,319,400 leva. Some 8,740,004,100 leva will be spent on pensions in 2016, while 1,233,456,500 leva, on welfare benefits. The budget envisages 75,630,500 leva for programmes, activities and services, related to social insurance.

Kornelia Ninova (BSP Left Bulgaria) noted that the revenue planned for the budget amounts to some 260 million leva more compared to 2015, but these have still been reduced. Minimum wages are raised from 380 to 420 leva, but this has not been provided in the revenue section, she noted. Ninova pointed out that there are provisions for a GDP growth by 2 per cent and 10,000 new employed, who should make more insurance contributions. According to the BSP, more revenue to the budget can be received from an increase of the maximum insurance contribution threshold instead of the minimum insurance contribution thresholds. Additional 330 million leva can come to the budget by raising the Unemployment Fund from 1 to 2 per cent.

The MRF demanded an increase of revenue by 140 million leva. The arguments are supported by opinions of employers and trade unions, Hasan Ademov noted. Underestimation of revenue does not allow unfreezing of social payments, which is the major problem, he pointed out. Obviously, the state social insurance budget generates the largest deficit with such policies, or a total of 4,700 million leva. The deficit planned for 2018 exceeds the one planned for the current year by 9 million leva.