Bulgaria Introduces Special Legislation for 2025 Budget Before Annual Plan and Municipal Budgets
In a significant move, Bulgaria’s cabinet has proposed a special law for the collection of revenues and the execution of spending in 2025. This was announced by Prime Minister Dimitar Glavchev ahead of the cabinet’s meeting. The law is intended to ensure the normal functioning and execution of expenditures pending the adoption of the annual plan and budgets for municipalities and regional administrations.
"We are focusing on financial stability and sustainability of public finances," Glavchev stated, emphasizing the importance of the new law. Finance Minister Ludmila Petkova revealed that the ministry has been discussing the shape of the law to be tabled in parliament. She noted that the so-called extended budget law has historically been an anti-crisis measure, not permanently legislated.
Petkova dismissed the possibility of an extended budget law due to the differing budget structure for the year and the already enacted laws governing salaries in higher education, defense, and security. She assured that the higher salaries in the Interior Ministry, defense, and higher education would take effect in January, in conjunction with the new minimum wage of 1077 BGN.
However, state employees on minimum wage will not receive the increase, as their salaries will remain at 933 BGN due to the ongoing 2024 budget. All discrepancies will be rectified upon approval of the annual budget, Petkova promised. Meanwhile, social payments remain the same as in 2024, with minimum pensions set to be paid on January 7 at 2024 levels, pending legislative confirmation.
The new law, as proposed by the cabinet, aims to provide a legal framework that ensures the smooth functioning of the state and municipalities while guaranteeing citizens’ rights and legitimate interests. It ensures timely payments of salaries, pensions, social assistance, and other social payments, as well as access to tax preferences and exemptions. Simultaneously, it enables the implementation of specific laws governing particular public relations until the annual budget is adopted.
Today, the cabinet allocated 2 million BGN to households affected by power outages. Over 20,000 households will benefit from this assistance, Glavchev announced before the government meeting. "We are doing this to show that the state is present," he stated, while categorically distinguishing between compensation paid from Energy and Water Regulatory Commission (ERP) funds and those provided by the state.
