site.bta2024 Draft Budget: 3% Deficit and 3.2% Economic Growth, in Line with Eurozone Entry Ambition

The Finance Ministry's budget proposal for 2024 projects a 3% deficit on a cash basis and a 2.9% deficit on an accrual basis, average annual inflation at 4.8%, GDP at BGN 205.8 billion and 3.2% growth, Finance Minister Assen Vassilev said, presenting the key budget parameters on Friday.

The proposed budget is balanced within the Maastricht criteria and allows for the adoption of the euro.

The budget bill was published on Friday. It will be discussed and coordinated among ministries and will be presented to the National Council for Tripartite Cooperation and the political parties.

Vassilev expects the budget bill to reach Parliament on November 22.

The country's debt is projected at BGN 48.9 billion, 23.8% of GDP.

Budget revenues are projected at BGN 77.6 billion and expenditures at BGN 83.8 billion. Revenues as a percentage of GDP are 37.7%, which is equal to this year's share and slightly lower than in 2022.

The minimum monthly wage will increase from BGN 780 now to BGN 933, which is 50% of the average wage.

Capital expenditures will increase by 50% from BGN 8 billion to BGN 12 billion. Pensions will rise by 11%.

Capital expenditures of over BGN 1 billion are budgeted for municipal projects. Healthcare spending will increase by BGN 1.1 billion. Education spending is up by BGN 590 million. Defence spending is slightly over 2% of GDP, which provides for the new capabilities and combat readiness requested by the Armed Forces.

The allocation to the Interior Ministry includes additional spending on border protection with the construction of a radar system for low-flying aircraft and a new system for checking the new ID cards with a chip.

Payroll expenditures will increase by over BGN 2 billion. The average wage will increase by 10-12%.

Vassilev explained that technically speaking, the Ministry proposes changes in the local taxes, but the proposal actually came from the National Association of Municipalities in the Republic of Bulgaria. The proposed revisions of the Local Taxes and Fees Act allow the municipalities to change the rates at their discretion, he said.

The budget bill is always subject to discussion. There is time for a preliminary discussion to adjust everything and go calmly through the bill's adoption in Parliament, Vassilev said.