Bulgarian MPs to Have Final Vote on 2014 Budget

A second vote whether to update this year's state budget is scheduled for Wednesday.

The new budget, prepared after the one drafted by the previous elected government registered a BGN 1 B shortfall in its income statement. Additional expenditure is also urgently needed to tackle the aftermath of the crisis at Corporate Commercial Bank (KTB), with deposits worth BGN 3 B due to be paid starting 4 December.

Earlier this week the temporary Budget Committee in Parliament approved the draft legislation on a second reading.

A new cap on the deficit (3.7 percent of GDP) and public debt (BGN 4.5 B additionally) will be introduced, with the ruling coalition arguing the move is inevitable despite the threat of an excessive deficit procedure which could be triggered by the EU Commission.

The bill has seen some amendments since first unveiled by the Council of Ministers. It now includes the proposal of Deputy PM and Social Minister Ivaylo Kalfin (ABV) to grant a Christmas bonus to every pensioner, with BGN 50 M set aside to that end.

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