site.btaFinance Minister: Tax Revenue Projections to Be Met This Year, No Wage Increase Foreseen for 2023

The projected tax revenues in this year's budget will be met. The ministry expects an over-execution of BGN 250 million, caretaker Finance Minister Rositsa Velkova told journalists. This year's budget implementation as of the end of September is a surplus of BGN 989 million or 0.6% of the estimated gross domestic product (GDP).

The deficit is taking shape in the last quarter, and the ministry expects it to be close to the one voted by the National Assembly, Velkova said. The projected deficit for 2022 is 4.1% of GDP and on a cash basis, the year is expected to end with a deficit of 3.4% of GDP. The expected deficit on an accrual basis, which will be 5.4% of GDP, is the fourth largest when compared with eurozone member states, Velkova added.

Bulgaria will receive payments of BGN 2.6 billion from Brussels under the National Recovery and Resilience Plan in December. On the expenditure side of this year's budget, there will be a reduction of BGN 1 billion in capital expenditure under the Plan.

The growth is expected to be contained for personnel costs and pensions, Velkova told BTA. The ministry expects the minimum wage to remain at BGN 710 next year, the average to be BGN 1,915 and the average monthly social security income to be BGN 1,444.

Pensions will be raised according to the current Swiss rule by 12%, but no other increase is foreseen.

The Finance Ministry envisages abolishing all reduced VAT rates that have been introduced in recent years.

If no budget is adopted, next January this country will be making the same expenditure as this January but complying with the legal changes. In terms of liquidity, Bulgaria can draw debt up to the amount of debt refinancing - that is up to BGN 3 billion, Velkova said.

The euro adoption plan is being implemented and working groups have been set up on it, she added.