Parliament adopted the 2016 state budget later on Wednesday. Basically the event is considered by politicians and analysts to be one of the most important across the year. Many common people also monitored closely the debates under the influence of the endless media budget talks, but also due to the fact that the state remains the biggest employer and investor in the country. Their salaries, pensions, scholarships etc. depend on it after all.
The process has been relatively smooth this year with few, but painful and indicative exceptions. Besides the exotic speculations of some queer analysts, most observers have admitted that the new public budget offers no sensations, being quite technocratic. It foresees nothing apocalyptic or dramatic over the next year, regarding the social and economic life of the average Bulgarian – the budget speed shall be cruising without any waves, under relatively comfortable conditions and a bit gloomy skies. The latter are due to the international situation, terrorism and other confrontations that endanger peace everywhere, not only in Bulgaria and Europe. However, this is another topic of conversation, despite its budget dimensions, as defense and security funding goes up.
The government is to spend the most on infrastructure and health. They are giving a bit to the social sphere, for pensions and welfare, the belt is a bit loosened on public administration… and that’s it. That modesty and parsimony is also applied to taxes – those won’t be raised and remain at their current level. Budget revenues will grow alongside the GDP growth, i.e. below 2 percent plus external debts which may reach the ceiling of EUR 2.7 bln., but this is unlikely to happen. After all, the public deficit will drop to some 2 percent of GDP and will be acceptable for Brussels.
How come we carry on the so expected and promised reforms in the spheres of education, police, justice and healthcare with this conservative budget policy, observers ask. Well, it’s not always about money, sometimes the political will is more important, the government responds, reminding that these reforms aim precisely at the opposite – to lower unreasonable expenses and to improve the effectiveness of the different social systems. It sounds nice and sensible; let’s see if it will happen. The recent example with the police force gives us grounds for suspicion – once the authorities tried to reform and to save money from the generous bonuses of the police officers, those jumped as one to protest and failed the plans of the government.
English version: Zhivko Stanchev
The Bulgarian National Bank has lowered the base interest rate for the second consecutive month. As of August 1, it stands at 3.53%, down from 3.63% in July. Since the end of 2023, the base interest rate has been gradually falling. From February..
Moody's expects Bulgaria to join the Eurozone no later than the beginning of 2026. According to the rating agency, the growth of the Bulgarian economy in 2024 will be 2.9%. The ongoing domestic political crisis and the likelihood of new early elections..
Until the end of 2024, businesses will continue to receive compensations for high electricity prices. They will be 100% after a price of over 90 euros per megawatt hour on the stock exchange. The previous threshold was 100 euros. The..
The unemployment rate in Bulgaria stood at 5.41% in July, the National Employment Agency says. 152,844 is the number of unemployed persons..
+359 2 9336 661