site.bta2025 Bill Bridging Public Finance Gap Passes Second Reading in Parliament

The National Assembly passed on Wednesday, at its second reading, the bill bridging the public finance gap until the passage of the three budget laws for 2025. The full title of the legislation 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 Budget Act and the 2025 National Health Insurance Fund Budget Act." 

The bill passed on first reading on the floor of the National Assembly and on second reading in the Budget and Finance Committee earlier on Wednesday.

The legislation regulates the collection of revenue and execution of expenditures in 2025 for a period of up to three months, in compliance with the Public Finance Act, the Social Insurance Code, and the Health Insurance Act.

If the revenue for the relevant period is insufficient to cover expenditure and transfers, payment limits will be reduced proportionally to match revenue levels. Principal budget administrators are required to prioritize payments, ensuring that salaries and social benefits are paid in full, MPs agreed.

The Council of Ministers is authorized to fund capital expenditures and, if necessary, other costs and/or transfers, using funds from the previous year’s balance, except for resources from the State Fund for Guaranteeing the Stability of the Public Pension System. Proposals from Continue the Change-Democratic Bulgaria (CC-DB) regarding specific expenditures to be approved by the Council of Ministers were rejected.

The bill also introduced provisions for collecting targeted contributions from electricity producers into the “Electricity System Security Fund” fund, which will serve as a source of financing compensation programmes for non-household electricity consumers.

Several proposals were excluded from discussion and voting in the plenary hall, including the retention of a 0% rate for bread and flour, the extension of the preferential 9% rate for restaurateurs, and amendments to the Renewable Energy Sources Act related to ethers, aimed at preventing a petrol shortage from March 1 this year.

The law takes effect retroactively as of January 1, 2025, following approval by 167 votes in favour, 0 against, and 37 abstentions.