The President of the Confederation of Independent Trade Unions of Bulgaria (CITUB), Plamen Dimitrov, has issued a stark warning that Bulgaria’s financial stability is at risk if a national budget for 2025 is not adopted.
Speaking during a press briefing on December 13, Dimitrov cautioned that government-funded services, including schools and hospitals, could cease operations by January 19, 2025, due to depleted resources.
“There must be a budget law for 2025,” Dimitrov stressed. “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.”
Budget Controversy and Social Tensions
The budget deadlock has become a source of growing concern across Bulgaria. Dimitrov criticized the lack of urgency among policymakers, highlighting the severe consequences of failing to adopt a budget.
The 2025 draft budget includes a controversial new tax on subsoil resources, projected to generate 900 million leva in revenue. However, this measure has sparked significant social and political tensions.
The tax proposal has faced strong opposition from businesses and workers who argue it could disrupt industries and increase costs. Dimitrov, who attended discussions at the Ministry of Energy earlier in the day, described the proposed tax as a critical sticking point in budget negotiations.
Finance Minister Lyudmila Petkova acknowledged the challenges of balancing the state treasury’s needs with the interests of the business community.
“Finding a solution that satisfies all stakeholders is no easy task,” she admitted, adding that the proposed tax remains a key element of the draft budget.
Emerging Compromise and Remaining Shortfall
In an effort to address the impasse, a protocol agreement has been proposed as a potential compromise. According to Dimitrov, this agreement involves a 140-million-lev advance payment of commissions and fees, which could partially offset the need for the controversial tax.
“While some consensus is emerging, it is clear that this is not a complete solution,” Dimitrov noted. “Even with this compromise, the state still faces a shortfall of approximately 700 million leva. Bridging this gap is essential to ensure the uninterrupted functioning of public services.”
Despite this tentative progress, Dimitrov emphasized that the time for action is running out. He called on the government to expedite negotiations and finalize the budget to avoid a financial shutdown.
Critical Deadlines and Broader Implications
The stakes could not be higher, with the January 2025 deadline fast approaching. Without an approved budget, Bulgaria faces the prospect of halting government operations, leaving citizens without access to essential services.
Dimitrov’s warning has placed renewed pressure on lawmakers to resolve the budget impasse. As negotiations continue, the nation waits anxiously to see whether its leaders can avert a looming crisis that could paralyze the state and disrupt daily life for millions of Bulgarians.