For the first time, the widow’s pension is being raised, it will be already pay 30% of that of the deceased spouse
The employer will compensate with 1 day less from sick leave – only the first two days
The money for maintenance and wages of officials are raised by BGN 370 million.
They give 3 million for pharmacies in remote areas areas and for night counters
For the first time in Bulgaria, incomes will grow twice as fast as annual inflation. This shows what is included in the new budget for next year, which was presented by Finance Minister Asen Vasilev on Friday evening.
It is planned that from January 1, 2024, the minimum salary will become BGN 933, and the minimum pension for seniority and age will reach BGN 580.57, compared to BGN 523.04 now. Thus, the minimum wage will become 50% of the national average, and all pensions will be indexed according to the Swiss rule by 11%.
The new budget accounts are calculated with average annual inflation of 4.8%, which will slow down to 3% at the end of 2024. Thus, price growth will lag behind income growth by more than 2 times.
In the coming years, inflation will continue to slow down smoothly, especially with the expected dynamics of international prices. In 2025 and 2026, year-end inflation will continue to decline, to 2.4% and 2.1%, respectively. The average annual rate of inflation will be 2.8% in 2025 and 2.2% in 2026. This is recorded in the three-year forecast of the finance ministry, on the basis of which the budget for next year is developed.
The minimum social security income, which usually follows the growth of the lowest salary from January 1, 2024, should be equal to the increased minimum salary of BGN 933, the finance proposes.
The maximum insurance income is also raised – by BGN 350 to BGN 3,750. The funds are provided and are provided for in the budget of the Social Insurance Institution, which will be BGN 24.343 billion, of which BGN 21.606 billion will be spent on pensions.
The proposal of the Ministry of Finance to the deputies is the so-called widow’s allowance from a deceased husband to be increased to 30% of his pension. Currently, this supplement is 26.5%.
Employers, on the other hand, should pay one day less than the sickness benefit – it would be their obligation to cover the first two days of sick leave instead of the first three days of sickness, as it is now.
Monthly allowances for raising a child are also increasing. Thus, families will receive BGN 50 for one child, BGN 110 if they have two, BGN 165 for three children, BGN 175 for four and BGN 20 for each subsequent child.
The one-time birth allowance for the first child is planned to be 375 BGN, for the second – 900 BGN, for the third – 450 BGN, for the fourth and for each subsequent child – 300 BGN.
They are also preserved
child tax credits,
which reduce the family’s pre-tax income by a 10% tax. For one child, the deduction is BGN 500, for two – BGN 1,000, for three or more BGN 1,500, for a child with 50% disabilities – BGN 1,000.
Vouchers for food and payment of household bills for BGN 1.4 billion have also been included in the budget, and from this year they will also be electronic, not just paper.
It is planned that the treasury will collect BGN 77.6 billion and spend BGN 83.8 billion. The macro-framework of state finances for next year foresees that we will also produce goods and services for a record BGN 205.8 billion. The expected growth of the economy is 3.2%.
The budget remains in deficit, but it is within the criteria for membership in the Eurozone – 3% on a cash basis and 2.9% on an accrued basis. Government debt as a percentage of GDP will decrease to 23.8%. The ceiling for it is BGN 10.7 billion, and state-guaranteed debts must not exceed BGN 4.5 billion.
The money for maintenance and salaries of officials has been increased by BGN 370 million, but it will be spent according to a methodology that will be proposed by the Council of Ministers in order to overcome inequalities in the various administrations.
In total, personnel costs increased by a little over BGN 2 billion compared to the previous year, including the upcoming increase in the minimum wage.
An obvious priority of the budget is income and investment policy. Health care costs are expected to increase by BGN 1.1 billion. This is the increase in the budget of the National Health Insurance Fund.
Nearly BGN 7.6 billion is earmarked for health insurance payments. Half a billion will go to outpatient care – BGN 563 million, and specialized outpatient care will be financed with BGN 562 million. BGN 237 million should go to medical the diagnostic activity.
More than BGN 2 billion have been earmarked for medicines, BGN 910 million have been allocated to oncology drugs in hospital care. Hospital assistance will be financed with BGN 3.5 billion, and BGN 329 million has been prepared for dental treatment.
In accordance with the regulations, next year, the treasury will finance pharmacies in remote and hard-to-reach areas or those that are the only contractor for the relevant activity in the municipality, as well as with 24-hour working hours or night counters. For this purpose, the budget provides up to BGN 3 million.
590 million BGN more than this year, the money for education has been increased, which also includes the indexation of teachers’ salaries, so that they are equal to 125% of the average salary.
The budget has set aside BGN 63 million for increasing child support in kindergarten and municipal school, BGN 80 million for new textbooks, BGN 30 million for additional costs and BGN 87 million for building new kindergartens , although for several years in a row the municipalities have not absorbed this money.
50 million will be used to build or reconstruct new gyms, and over 50 million BGN will be given to the sports and arts program at school.
As required by the rules of NATO membership, defense spending is set at just over 2% of GDP, ensuring that all capital expenditure is fully covered. The money for the Ministry of the Interior, in addition to more wages and an increase in subsistence along the border, includes the construction of a radar system for low-flying objects, as well as costs for the introduction of personal cards with a chip.
The increase in spending on culture is more modest – with BGN 50 million for state cultural institutes in the field of performing arts, BGN 9.3 million more for the film industry, BGN 28.5 million more for museums, as for each cultural institute, funding will be provided for real activity according to a methodology that will be developed by the Ministry of Culture.
A capital program with BGN 4 billion more compared to the usual BGN 8 billion of the previous two years is included in the new budget. However, the difference is that there are no listed directions and specific objects to be financed.
The compensatory subsidy has increased by BGN 60 million. If the changes in the tax laws are adopted, which foresee an increase in local taxes, the municipalities will also receive additional income from them if they keep their collection high.
The budget so far has only indicated the total amount of capital expenditure, and also listed projects that will receive state guarantees.
2023-11-12 21:00:00
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