site.btaEconomy Minister: Bulgaria Needs New Budget or Budget Extension Law to Make Payments after June 10

Economy Minister: Bulgaria Needs New Budget or Budget Extension Law to Make Payments after June 10
Economy Minister: Bulgaria Needs New Budget or Budget Extension Law to Make Payments after June 10
Economy Minister Nikola Stoyanov (BTA Photo)

“After June 10, when the budget extension law expires, in practice from Monday (June 12) the state will not be able to make payments,” Economy Minister Nikola Stoyanov explained on BNT's morning show on Sunday. In such cases when there is no budget passed or the budget extension law has expired, the country must return to a zero balance, namely - it can only spend if the budget is in the plus, when it is in the minus, it is not allowed to spend anything until it becomes zero again and eventually in the plus, he added.

This would lead to an inability to pay salaries, Stoyanov pointed out. He said that June’s pensions will be paid by the 10th of the month anyway so they are not in danger. But in theory, the expiration of the extension law would bring all payments to a halt.

“I am firmly convinced that the MPs are aware of this responsibility and will either adopt a new budget or at least an extension of the current one,” the Economy Minister stated, but added that according to him, a new budget is unlikely to be voted by 10 June.

“By extending the current budget the situation will be saved from the most negative scenario, we will continue to spend 1/12 of last year, but the current situation is radically different,” Stoyanov stressed. “It is very difficult to work with the 2022 budget in 2023,” he explained.

The Economy Minister argued that the main issue comes from the expenses, which have increased by nearly 30% compared to last year.

The Bulgarian business has shown in these complicated times that it is quite stable and flexible, he said. There can be no question of recession in Bulgaria, Stoyanov assured. “The Bulgarian economy is stable, it is growing and exports are also growing. But the state could not make up for these huge expenses with the corresponding revenues,” he added.

Bulgaria does not export arms to Ukraine, not a single permit has been given, Stoyanov was adamant. “We export to partner countries,” he clarified

According to him, inflation is at a record low in our country. Prices are generally falling, so inflation is falling, but food prices are not falling at the same rate. In certain categories, such as oil and butter, there is a decline. 

/MR/

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By 23:00 on 28.03.2024 Today`s news

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