Bulgaria’s State Funds to Run Dry by January 2025 Without Budget, CITUB Warns

The President of the Confederation of Independent Trade Unions of Bulgaria (CITUB), Plamen Dimitrov, issued a stark warning that the state's financial resources will be depleted by January 19, 2025, if a budget for the year is not adopted. He explained that without a budget law for 2025, government-funded services, including schools and hospitals, would cease to operate. Dimitrov emphasized the gravity of the situation, pointing out misconceptions surrounding budget financing:

"There must be a budget law for 2025. Those suggesting otherwise fail to grasp the implications. Financial experts have told me that the state cannot operate on the so-called '1/12 rule' as some believe. If we proceed without a budget, spending in January 2025 will be limited to revenues collected in January 2024. This approach would only sustain government operations until January 18. By January 19, without an approved budget, the state would face a shutdown, effectively halting its functioning."

Dimitrov also addressed the ongoing controversy surrounding the new tax on subsoil resources, which has sparked considerable social tension. During discussions held at the Ministry of Energy earlier in the day, it was revealed that the draft budget relies on this tax to generate 900 million leva in revenue. However, concerns persist about its impact on businesses and workers. Finance Minister Lyudmila Petkova acknowledged the challenges of finding a solution that satisfies both the treasury's needs and business interests.

According to Dimitrov, a protocol agreement has been reached that could serve as a potential compromise. This agreement involves a 140-million-lev advance payment of commissions and fees, rather than the introduction of a new tax. However, he noted that while some consensus is emerging, the state still faces a shortfall of approximately 700 million leva that must be addressed.

Source: Bulgarian National Radio (BNR)