site.btaLabour and Social Policy Minister Gutsanov Comments on Budget, Eurozone, Inflation, Bankya Incident

Minister of Labour and Social Policy Borislav Gutsanov said on the air of the Bulgarian National Television on Saturday morning that the victims of the gas explosion in Bankya who meet the specified conditions will receive the necessary assistance from the Ministry.

Gutsanov also commented on the "hole" in the state budget of about BGN 18 billion, and stressed that a way out of the situation would be found. The first decision of the Council of Ministers was to withdraw the budget in order to find a solution, he said and assured that social payments would not be affected. He noted that biggest "hole" comes precisely from the increase in pensions, they have been increased by nearly BGN 10 billion for the entire 2025, as well as from the increase in salaries in the Ministry of Defence and the Interior Ministry. Gutsanov also said  that there will be no increase in taxes.

"The fiscal reserve is BGN 9.2 billion, with the minimum that must always be maintained being BGN 4.2 billion, that is, there is enough reserve," Gutsanov said. He explained that whether money will be taken from the reserve is a decision of the Council of Ministers. "But even if such a step is taken, it will be in very, very limited funds," he said.

Gutsanov also commented on proposals to affect the demographic crisis, including options for tax relief after a first or second child, which will have to be adapted to the parametres of the new budget.  He also said that it is worth considering a programme in the future to support young families for their first home and purchase of their first car. 

On Bulgaria's future entry into the eurozone, the Minister said that it was not a mistake that the government refused to request a convergence report. "It is not a mistake, because the real figures and the state of the country need to be seen, there is no budget yet," he noted, adding that the budget should be adopted first. "We should enter the eurozone when we are ready," Gutsanov said. 

The Minister added that everything possible must be done to prevent inflation from increasing. The first priority is to avoid social protests, so that people can feel calm, he said. The complex configuration in government may prove useful in this difficult moment, Gutsanov commented.