Bulgaria’s national Assembly Rejects Draft Budget, Signaling Push for Regular Government
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In a bold move that underscores the political turbulence in Bulgaria, the National assembly has abstained from accepting the draft budget submitted by the caretaker government. This decision, according to former Finance Minister Milen Velchev, reflects a serious intention to form a regular government and address the contry’s financial challenges.
Velchev, who served as finance minister from 2001 to 2005, praised the National Assembly for its decision to consider a specially prepared plan-account for 2025.“The main reasons for the scandalously increased costs are due to a number of illogical and irrational things done with the budget in recent years,” he stated during an interview with Bulgaria ON AIR.
The rejection of the draft budget highlights the growing tension between the caretaker government and the National Assembly. Velchev emphasized that the role of the government and the finance minister is not merely to accept past mistakes but to take decisive steps to stabilize state finances.
Key Issues with the Draft Budget
Velchev pointed to several problematic areas in the budget, including the rapid increase in pension costs and wage hikes. “The faster pace of pension increases than the ‘Swiss Rule’ suggests, including the hearty handing out of 50 percent wage increases—all this has been decided by previous National Assemblies,” he explained.
He also criticized the lack of fiscal discipline, stating that the government must prioritize cutting unnecessary expenses rather than seeking new sources of revenue. “The most important thing for the state is not to figure out were to get money for new expenses, but how to cut expenses that have already been voted,” Velchev added.
Protests and Public Backlash
The decision to reject the draft budget comes amid growing unrest among employers and unions, who are preparing protests over the lack of compensation for the higher cost of electricity. Velchev acknowledged the challenges but stressed that the state cannot continue to compensate for every economic hardship.
“The compensation was caused by the state of pandemic.We cannot forever be in a pandemic from now on and forever compensate everyone who is ready to go out on the street for something,” he said.
A Call for Fiscal Duty
Velchev’s comments underscore the need for fiscal responsibility and tough decisions in the face of Bulgaria’s economic challenges. He urged all stakeholders to make sacrifices and accept the difficult budget situation.
“Everyone here will have to make their sacrifice and swallow the difficult budget situation in the state,” he concluded.
Summary of Key Points
| key Issue | Details |
|————————————|—————————————————————————–|
| Draft Budget Rejection | National Assembly abstains, signaling push for regular government. |
| Fiscal challenges | Rapid pension increases, wage hikes, and lack of cost-cutting measures. |
| Protests | Employers and unions prepare protests over electricity cost compensation. |
| Velchev’s Stance | Calls for fiscal discipline and sacrifices to stabilize state finances. |
What’s Next for Bulgaria?
The rejection of the draft budget marks a critical juncture for Bulgaria’s political and economic future. As the National Assembly prepares to consider a new plan-account for 2025,the focus will be on addressing the country’s fiscal challenges and restoring public trust.
For more updates on Bulgaria’s political and economic developments, stay tuned to world today news.
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This decision by the National Assembly is a clear signal that Bulgaria is at a crossroads. Will the country embrace fiscal discipline and pave the way for a stable government? Only time will tell.
Bulgaria at a Crossroads: National Assembly Rejects Draft Budget Amid Fiscal Challenges and Political turmoil
In a bold move that underscores the political turbulence in Bulgaria,the National Assembly has rejected the draft budget submitted by the caretaker government. This decision, according to former Finance Minister Milen Velchev, signals a push for the formation of a regular government to address the country’s mounting fiscal challenges. With rising pension costs, wage hikes, and public unrest over electricity compensation, Bulgaria finds itself at a critical juncture. To delve deeper into the implications of this decision, we sat down with Dr. Elena Petrova, a renowned economist and fiscal policy expert, to discuss the current state of Bulgaria’s economy and what lies ahead.
The Rejection of the Draft Budget: A Push for Stability
Senior Editor: Dr.Petrova,the National Assembly’s rejection of the draft budget has been described as a bold move. What does this decision signify for Bulgaria’s political and economic landscape?
Dr. Elena Petrova: This decision is a clear signal that the National Assembly is no longer willing to accept the status quo. The rejection reflects a growing demand for a regular government that can address the country’s fiscal challenges head-on. The caretaker government’s inability to present a lasting budget has highlighted the need for decisive action. This move is not just about the budget; its about restoring stability and public trust in the government.
Key Issues with the Draft Budget
Senior Editor: Former Finance Minister Milen Velchev pointed to several problematic areas in the draft budget, including rapid pension increases and wage hikes. What are your thoughts on these issues?
Dr. Elena Petrova: The rapid increase in pension costs and wage hikes is indeed a significant concern. While these measures may have been politically popular, they are not sustainable in the long term. the “Swiss Rule,” which links pension increases to inflation and wage growth, is a more balanced approach. However, the previous National assemblies have bypassed this rule, leading to a ballooning budget deficit. The government must prioritize fiscal discipline and focus on cutting needless expenses rather than seeking new sources of revenue.
Protests and Public backlash
Senior Editor: The rejection of the draft budget comes amid growing unrest among employers and unions, who are preparing protests over the lack of compensation for the higher cost of electricity.How shoudl the government address these concerns?
Dr. Elena Petrova: the government is facing a challenging balancing act.On one hand,it needs to address the legitimate concerns of employers and unions who are struggling with higher electricity costs. On the other hand, the state cannot continue to compensate for every economic hardship. The compensation measures introduced during the pandemic were necessary at the time, but they cannot be a permanent solution. The government must find a way to support those most affected while also ensuring fiscal sustainability.
A Call for Fiscal Responsibility
Senior Editor: Velchev has called for fiscal discipline and sacrifices to stabilize state finances.Do you agree with this approach?
Dr. Elena Petrova: Absolutely. Fiscal responsibility is crucial at this juncture. The government must make tough decisions to stabilize the economy. This may involve unpopular measures, such as cutting unnecessary expenses and reforming the pension system. However, these sacrifices are necessary to ensure long-term economic stability. All stakeholders, including the public, must understand that these measures are in the best interest of the country.
What’s Next for Bulgaria?
Senior Editor: With the rejection of the draft budget,what do you think lies ahead for Bulgaria?
Dr. Elena Petrova: The rejection of the draft budget marks a critical juncture for Bulgaria. The National Assembly must now focus on addressing the country’s fiscal challenges and restoring public trust. This will require a concerted effort from all political parties to form a regular government that can implement the necessary reforms. The road ahead will not be easy, but with fiscal discipline and decisive action, Bulgaria can overcome these challenges and pave the way for a stable and prosperous future.
Senior Editor: Thank you, Dr. Petrova, for your insights. It’s clear that Bulgaria is at a crossroads, and the decisions made in the coming months will have a lasting impact on the country’s future.
Dr. Elena Petrova: thank you. It’s a challenging time, but also an possibility for Bulgaria to make the necessary changes to secure a stable economic future.
