–
–
The Minister of Finance Asen Vassilev PHOTO: Archive
–
A new recalculation of is being prepared money for elderly Bulgarians with current insurance income – the previous one was in 2008.
BGN 1.5 billion more revenues are expected in the budget
Recalculation of pensions with current insurance income can be proposed by the official cabinet. This was announced by Finance Minister Asen Vassilev on Friday during a public discussion of revenues and expenditures in the state treasury. It is currently being discussed whether this update of the money of the aging Bulgarian population, which is 2.08 million people, should be made within the framework of a budget update, which will be submitted to the next parliament.
The Deputy Governor of the National Social Security Institute Vessela Karaivanova explained that the experts at the National Social Security Institute are already making calculations for recalculating the pensions compared to a more modern social security income, BTA reported. The pension in Bulgaria already replaces over 45% of the income from people’s salaries, and for the minimum pension this replacement indicator is over 50%. Vessela Karaivanova reminded that in 2017 the average pension in our country was BGN 345, and in 2021 it is already BGN 488.97.
The last recalculation of the money for the elderly was in 2008.
The caretaker government will present an update of the budget due to the expected BGN 1.5 billion more revenue than planned. That is why Asen Vassilev explained that estimates are being made for the new recalculation of pensions, which will lead to an increase in most of them. The Minister of Finance added that different options are being worked with the NSSI.
Vassilev said that the improvement in collection was due to the measures taken, such as the strengthened tax control of large taxpayers, the collection of overdue debts, the checks of large cash stocks and others. The Minister identified as urgent needs the continuation of the scheme for maintaining employment 60/40, the supplements of BGN 50 for pensioners, as well as the additional BGN 1,000 per month for first-line medics.
Vassilev explained that in recent years budget revenues have grown by 7% and expenditures by 10%. It was therefore necessary to monitor cost-effectiveness and increase tax collection. There were sectors in which it was necessary to check what kind of services were provided against the respective funding. Vassilev also saw strange expenses in the current budgets. “We want to see how many kilometers of highways have been built and how much have been paid, as well as the ratio of hospital to pre-hospital care – in our country it is five to one, and in the EU it is 1.5 to one,” he said.
In the revenue side of the budget, excise duties grew twice as slow as other revenues. The state sold assets worth BGN 150 million annually, mainly land, but there were below-market prices in these transactions. Staff costs in the budget grew too fast – by 59% from 2016 to 2020, said Vassilev. This included an increase in staff and salaries. According to the Minister, the revenues from concessions were also small – 145 million per year. Therefore, together with the Ministry of Energy, a change in the concession fees is being prepared.
Vassilev also said that a new debt may not be drawn.
– .
