Concerns that the caretaker cabinet is updating the budget with money it does not have

In a hurry they forgot to evaluate the effect for the following years

The caretaker government’s proposed budget update for this year, which envisions BGN 2.1 billion more revenue than originally planned and BGN 1.3 billion more expenditure, will not be approved by parliament despite pressure from the end of last week, which was exercised by President Rumen Radev and Prime Minister Stefan Yanev.

If the update is not approved, the funds for dealing with a possible fourth wave of the pandemic will end by the end of August, the message from a meeting of the head of state with part of the caretaker government he appointed was categorical.

Even if the budget is updated, this will not happen according to the option proposed by Stefan Yanev’s cabinet, however, it became clear from statements on Sunday by the MP from “There is such a people” Plamen Danailov. He is also the party’s nomination for a possible new finance minister.


the update,

prepared by

the office

Minister Assen

Vassilev, there is




Danailov is motivated in front of Nova TV.

“There are such people” are the largest parliamentary group with 65 deputies. And against the update of the caretaker government will be against the 63rd MPs of GERB, after on Friday the former Minister of Health Prof. Kostadin Angelov announced that the current budget has money for medics in the fourth wave. He even accused caretaker Minister Stoycho Katsarov of lying.



the proposal

of the official

government with

they will certainly be

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128 deputies,

which makes its acceptance impossible.

However, ITN is preparing its own update, said Plamen Danailov. According to him, the party is ready with its model for a change in state money for this year.

The main criticism of “There is such a people” against the update prepared by the caretaker government is that it is not clear whether the revenues set in more to finance the additional expenses are real. And if it is possible to be achieved this year, will they be sustainable enough.

“The budget update submitted by the Cabinet of Ministers,

it looks written

quickly without

are reported

various facts

The Fiscal Council also took it into account, for the first time in a long time it voted with a special opinion “, Danailov pointed out.

The Fiscal Council has existed since November 2015, and its task is to monitor the quality of budgets and budget forecasts as an independent body. It includes Prof. Dr. Boris Grozdanov (Chairman), the Rector of VUZF Assoc. Prof. Grigory Vazov, the former Deputy Minister of Finance Dora Andreeva, the former MRF MP Yunal with a 6-year term, which expires in November this year. Tasim and former Deputy Minister of Finance Lyubomir Datsov. The latter was nominated for Minister of Economy in the first version of the ITN government with Prime Minister Nikolay Vassilev.

The state

budget for

2021 is not

need of


at the moment, and the development of the economy implies consolidation of the budget, not an increase in expenditures, reads the opinion of the council on the update proposed by the caretaker government.

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“A significant part of the revenues that should serve as a basis for financing the expenditures are due to one-off phenomena that are not sustainable. The Council considers that policy changes should be approached with particular care, “the council said in a statement.

Special attention is paid to the fact that

the government

has not changed

the forecast for

2022, when

large part of the


costs will



to be performed

The update of the caretaker government envisages higher revenues by nearly BGN 2 billion. Tax revenues are expected to be BGN 1.3 billion, BGN 400 million – from the recovery and development plan, and insurance – BGN 300 million. The money will be allocated for an increase in all pensions by 12.5% ​​from October 1, as well as for measures to support business in the pandemic – BGN 1.2 billion, as well as to meet the fourth wave of the pandemic.

There is no security,

that provided

money on the plan for


will do

in 2021,

and even if they come, they are related to targeted expenditures and not to the implementation of other national policies, however, criticized by the Fiscal Council.

In addition, the planned additional insurance revenues are mainly related to payments to first-line medics and will disappear as soon as these bonuses are stopped, the council said.

Bulgaria’s contribution to the EU for this year should also increase by BGN 103.5 million.

In the update prepared by the caretaker government,

even missing

money for


of hospital

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We don’t know if there are budget buffers for this. We also do not know the predictions of how severe the health crisis will be, whether these set aside BGN 300 million will be enough, said Plamen Danailov as a critic.

An increase in the revenues from health insurance and respectively in the expenses of the National Health Insurance Fund by BGN 134.5 million is also proposed by the caretaker government, it is clear from the draft law submitted to the parliament.

The office

Minister of


Asen Vassilev



the update,

as it lacks BGN 14 million for the administration of vaccines, which are planned to be in the NHIF budget.

In addition, BGN 3 million, which is for additional administration, according to the Ministry of Finance, should not be included in the budget.

The changes in the budget envisage revenues in the amount of BGN 134.5 million from health payments. This includes health insurance contributions – BGN 105 million, and transfers for health insurance – BGN 29.5 million.

In health insurance costs BGN 117.465 million will be given for distribution by decision of the Supervisory Board of the NHIF.

– .

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