The Bulgarian Finance Ministry published the proposed changes to the 2022 State budget on its website on Monday. The anti-crisis measures, on which the ruling coalition has reached political consensus, is increasing State support for the business community and a social package.
The various tools in the package include increasing the tax relief for children, a zero VAT rate on bread supplies for a year, and raising pensions, effective July 1, 2022.
Net revenues under the Consolidated Fiscal Programme (CFP) are expected to increase by more than BGN 1.645 billion (1.1% of projected GDP), mostly as a result of higher tax revenues than originally planned and more funds projected to come from the EU.
The proposed changes are to result in an increase of net expenditures under the CFP by BGN 1.9733 billion in 2022, or 1.3% of projected GDP for the year.
According to the Finance Ministry, GDP will grow 2.9% in real terms in 2022, less than the estimate in the 2022 State Budget Act.
The Ministry expects end-of-year inflation to reach 11.6%.
In 2022, the current account deficit will rise to 2.4% of projected GDP.
The maximum monthly amount of one or multiple pensions will increase by 33.3%, from BGN 1,500 to BGN 2,000. As from October 1, this cap will be pushed up further, to BGN 3,400. As from July 1, 2022, the monthly social old-age pension will increase from BGN 170 to BGN 247, i.e. by 45.3%, and non-work-contingent pensions and supplements pegged to the social old-age pension will be raised by the same percentage.
Due to a delayed performance of a contract for the procurement of F-16 fighter jets, the Ministry proposes a decrease of the allocations on this expenditure item by BGN 70 million, from BGN 180 million to BGN 110 million. On the other hand, an extra BGN 170 million will be budgeted to ensure the combat readiness and maintenance of the Bulgarian Air Force’s MiG-29s.
/RY/
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