Bulgaria's Parliament Holds 1st Reading of 2013 Budget

The first reading of Bulgaria's State Budget 2013 started Thursday in Parliament.

Budget 2013 envisages increased spending on social policy, education, culture, and healthcare, according to reports of dnevnik.bg.

The bill provides for a GDP growth of 1.9% mainly driven by domestic demand and a deficit of around 1.3%.

The employment and unemployment rates are expected to stay the same as in 2012.

Budget 2013 envisages increased allocations in the following priority sectors: culture, up by BGN 35 M, healthcare, up by 91 M, public infrastructure, up by BGN 510 M, and agriculture, up by BGN 196 M.

Starting January 2013, the minimum wage will increase by BGN 20 to BGN 310, and the minimum social security thresholds will go up from BGN 2000 to BGN 2200.

As of April 2013, pensions will increase on a differentiated basis by an average 9%.

Starting 2013, a new tax will enter into force – interest earnings from deposits of natural persons will be taxed at 10%.

Starting 2013, there will also be a turnover tax rate of 7% on online gambling.