site.btaWhat's in the 2024 State Budget Bill

The draft state budget for 2024 provides for significant public investments: a total of BGN 9.983 billion, almost 10 billion leva, which is a 25% increase from the 2023 figure, Finance Minister Assen Vassilev said here on Tuesday. He was speaking during a debate on the proposed state budget at a meeting of the National Council for Tripartite Cooperation.

The deficit is set at 3% which is in keeping with the Maastricht criteria and makes sure Bulgaria will meet the standards for accession to the eurozone. 

Employment is expected to increase and unemployment to decrease. The decline is relatively slow as unemployment is relatively low. The average unemployment rate is expected to be around 4% and 3.9% by the end of the period, the Finance Minister added. 

The main parameters of the budget include increase in the minimum wage and the maximum contributory income. The government expects a wage growth in the economy, including in the private sector, of around 11% next year He said an increase in personnel costs is also expected in the public sector.

The Minister explained that the budget being discussed by the social partners reduces by BGN 2.4 billion both the revenues and the expenditures compared to the initial budget proposal. “This is a consequence of discussions with the political parties in Parliament, which asked us to reduce the revenue part of the budget,” Vassilev said. 

A number of policies are maintained. The tax system is fully preserved and there are no changes in tax rates. The only change comes in keeping with the European directive for a 15% corporate tax for companies with a turnover of BGN 1.5 billion. In Bulgaria, these are mainly foreign companies with parent-owners in other EU countries and the tax burden will not increase at the level of the entire corporation, Vassilev explained. 

The policy for financing education also remains unchanged and teachers' salaries remain at 125% of the national average.