site.btaBulgarian Industrial Association Releases Opinions on 2025 Draft Budgets

The Bulgarian Industrial Association (BIA) submitted to the National Council for Tripartite Cooperation its opinions on the 2025 draft budgets of the State, the National Health Insurance Fund (NHIF), and the Public Social Insurance, BIA said on Tuesday.

The Association confirms its support in principle for the Public Social Insurance Budget bill for 2025, as long as it is developed in compliance with the current legislation. At the same time, BIA has reservations on certain parameters, including the planned increase of the maximum social security income from BGN 3,750 to BGN 4,130.

BIA expresses its support in principle to the NHIF 2025 budget bill, insofar as it has been developed in compliance with the current legal framework. 

The Association appreciates several elements of the bill: The tendency to increase the funds for outpatient hospital care from 13.8% in 2024 to 14.7% in the 2025 budget; the significant increase in funds for dental care, by more than 25% compared to 2024; the continued practice of providing the necessary funds for drugs to treat malignancies. Along with this, once again, BIA expresses serious concern that the proposed draft does not change the philosophy of the budget of previous years, maintaining the structure of health insurance payments.

BIA abstains from supporting the current 2025 State Budget bill and the updated medium-term budget forecast for the period 2025-2028 for several reasons:

- The projected sharp increase in public debt, which puts into question the rate of economic growth and the efficiency of public spending;

- Underestimation of the role of private investment or uncertainty about its incentives;

- The increase in the maximum social security income;

- The abolition of reduced VAT rates on bread and flour and on the supply of catering services;

- The increase in the rate of excise duty on alcohol and beer;

- The introduction of an additional tax on mining;

- The introduction of a tax amnesty - non-payment of interest on the payment of principal amounts due on public claims and taxation at a 15% rate on a single declaration of undeclared income.