Bulgaria’s Acting Finance Minister Lyudmila Petkova has confirmed ongoing discussions regarding a proposal to grant pensioners a one-time Christmas supplement of 100 leva (approximately 50 euros) as part of the government’s budget measures for 2024.
The proposal is aimed at assisting Bulgaria’s most vulnerable pensioners, particularly those with basic pensions at or below the poverty line of 526 leva.
However, the bonus will not be extended to all pensioners. Petkova clarified that the supplement is intended for those with minimal income, specifically targeting individuals whose pensions do not exceed the poverty threshold.
The measure excludes pensioners who receive supplementary incomes, such as rents, annuities, or salaries, which boost their monthly earnings to a range of 1,000 to 3,000 leva.
The government’s focus is on providing relief to those struggling to meet basic needs, leaving out individuals who have additional financial resources.
The Christmas bonus proposal comes as the government works on finalizing Bulgaria’s 2024 national budget. Petkova announced that the draft budget, which will be submitted to parliament next week, anticipates a 3% budget deficit, amounting to 6 billion leva.
To achieve this fiscal goal, the government plans to introduce several measures, including the implementation of a “subterranean wealth” tax and higher excise duties on alcohol and cigarettes.
Despite these increases, Petkova assured that there would be no changes to the country’s tax rates or social security contributions.
The government is also introducing targeted salary increases, with a 10% rise in salary costs allocated to employees in the public sector, especially those in critical areas such as defense, education, and interior ministries.
Additional measures outlined to bolster revenue include taxing excess profits from banks and implementing two tax amnesties aimed at encouraging the payment of overdue taxes and the declaration of undeclared income.
Furthermore, the government plans to remove the reduced VAT rates currently applied to certain goods and services, a move designed to balance the budget without imposing additional financial burdens on citizens.
While the 2024 budget remains a topic of intense discussion, Petkova acknowledged the possibility of the budget being delayed until early 2025.
In such a case, the government would apply an extension law to maintain the current budget’s policies until the new budget is approved.
Alternatively, Article 87 of the Public Finance Law could be invoked, allowing the continuation of expenditure policies, but with strict limitations to ensure that spending does not exceed revenue.
Acting Prime Minister Dimitar Glavchev stressed the importance of the 3% deficit target, underlining its significance for Bulgaria’s ongoing efforts to join the Eurozone.
Glavchev warned that if parliament adopts measures that would push the deficit beyond the acceptable threshold, the government would withdraw its proposed budget.
The discussions surrounding the Christmas pension supplement are still under review, with the Ministry of Finance continuing to calculate the feasibility of providing the bonus.
As Bulgaria prepares for another challenging year, these budget measures are designed to balance fiscal responsibility with targeted support for the country’s most financially vulnerable populations.