site.btaBill Bridging Public Finance Gap Clears First Committee Hurdle

Meeting here on Tuesday, the 51st National Assembly Budget and Finance Committee voted unanimously to approve a bill bridging the public finance gap until the passage of the three budget laws for 2025.

The full title of the draft legislation, moved by the caretaker Cabinet, is "Act on the Collection of Revenues and the Commitment of Expenditures in 2025 until the Passage of the 2025 State Budget of the Republic of Bulgaria Act, the 2025 Public Social Insurance Act and the 2025 National Health Insurance Fund Budget Act."

"The caretaker Cabinet has repeatedly stated that, in addition to ensuring the conduct of fair and democratic elections, one of its key priorities is to maintain the country's financial stability and to ensure resilient public finance. Implementing this key priority, the caretaker Cabinet assumed responsibility to this country's business and citizens, as well as to the European and international partners, and laid draft legislation for a debate before the National Assembly," caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova said, addressing the MPs.

"We will do everything possible for the fastest possible handling of the bill and for its presentation [at the full house] before the end of this week. Every day of delay is inflicting a damage to the revenue side of the budget," said Budget and Finance Committee Chair Assen Vassilev MP of Continue the Change - Democratic Bulgaria.

"The [budget] extending law is invariably a stopgap and without a Parliament-elected government and without an adopted budget, this means that there will be no adopted budget until the end of February. If [early parliamentary] elections are held, there will be a budget in August at best," Vassilev pointed out.

"I suggest that we adopt the Budget Act as soon as possible, so that the State would not be left without a budget and without a government: that would be disastrous for both business and individuals," the Committee Chair added.

Margarita Petkova MP of GERB-UDF called on the MPs to be wise and responsible so that a regular government can be elected. "Such a government must have a clear political profile so as to assume political responsibility," Petkova said.

"This law can only apply for three months, and this is unavoidable as provided for in the Public Finance Act," Finance Minister Lyudmila Petkova said. "After that the National Assembly may extend the time limit for the collection of revenues but cannot revise the provisions of the law," she added.

The representatives of all employer and trade-union organizations said they would like to see a fast adoption of a regular budget law and submitted proposals for modifications of the extending bill on second reading at the committee stage.

The draft legislation contains a provision according to which payment limits would be reduced in proportion to the amount of available revenues if the revenues collected for the relevant period are insufficient to offset expenditures and transfers. Budget authorizers by delegation will prioritize their payments, with priority set on expenditures on wages and welfare payments which will be effected in full.

The Council of Ministers will be empowered to adopt a decision on financing capital expenditures and, where necessary, other expenditures and/or transfers, tapping financial resources at hand from the previous year excluding resources in the State Fund for Guaranteeing the Stability of the State Pension System, according to the draft submitted by the caretaker Cabinet.

Until the passage of the 2025 Public Social Insurance Budget Act, the revenues on this budget will be collected and the expenditures will be committed in the amounts, on the base, according to the mechanisms, procedures, criteria and other relevant indicators, parameters, limitations, minimum and maximum levels of specified indicators related to social insurance contributions, pensions, benefits and other social security payments that were effective as of December 31, 2024 and in accordance with the other applicable regulatory framework, whereas pensions on the public social insurance budget will be paid in full, the bill states.