Bulgaria Considers 100 Leva Christmas Supplement for Low-Income Pensioners

Bulgaria's Acting Finance Minister Lyudmila Petkova stated that discussions are ongoing regarding the payment of a 100 leva (50 euros) Christmas supplement to pensioners. The proposal targets individuals with a basic pension of up to 526 leva, equivalent to the poverty line, and excludes those with additional income sources. Petkova explained that pensioners with supplementary incomes such as rent, annuities, or salaries, which raise their monthly earnings to 1,000–3,000 leva, would not qualify for the bonus. This measure aims to prioritize support for pensioners with minimal income.

Petkova confirmed that the draft budget for 2024, set to be submitted next week, includes a deficit of 3%, or 6 billion leva. Measures to achieve this target include a "subterranean wealth" tax and increased excise duties on alcohol and cigarettes. No changes to tax rates or social security contributions are planned. The minimum wage is set at 1,077 leva, with a 10% increase in salary costs allocated to budget sector employees, particularly in defense, education, and interior ministries, as outlined by legislative changes.

Additional revenue measures to offset costs include taxation of excess profits from banks, two tax amnesties for overdue payments and undeclared income, and the removal of reduced VAT rates currently in place. These adjustments are designed to balance expenditures without raising standard tax rates.

Petkova acknowledged the possibility of the 2024 budget being adopted in early 2025, with an extension law for the current budget as an interim measure. Alternatively, the Public Finance Law’s Article 87 could be applied, allowing expenditures to align with current policies but restricting them to not exceed revenue.

Acting Prime Minister Dimitar Glavchev noted that the proposed budget maintains a 3% deficit to support Bulgaria's eurozone entry. He emphasized that the government would withdraw its draft budget if parliament adopts measures that jeopardize the deficit threshold. Glavchev reiterated that the Ministry of Finance is currently calculating the feasibility of providing the proposed Christmas pension supplement.

Sources:

• Bulgarian News Agency (BTA)
• Bulgarian National Radio (BNR)