In recent weeks, there has been ongoing concern regarding the state's expenses for next year, with projections showing that costs far exceed available funds. As a result, savings are being emphasized. However, municipalities have raised concerns about how these cuts might impact their investment programs, questioning whether they will still receive subsidies from the state budget. This issue was discussed on Nova TV by Silvia Georgieva, the chairwoman of the National Association of Municipalities (NAOMB).

Georgieva explained that municipalities are effectively "held hostage" by the lack of a state budget, but with the election of the new Speaker of the National Assembly, she noted that there is now hope for a resolution. She pointed out that about 80 percent of municipal funds come from the state budget, which means municipalities are unable to prepare their budgets for 2025 without the finalization of the national budget.

These funds are crucial for local governments to carry out repairs and smaller investment projects, such as fixing school roofs. Georgieva mentioned her recent meeting with Finance Minister Lyudmila Petkova, which left her optimistic. According to Georgieva, the government is working hard to stay within the 3 percent deficit target and meet its financial obligations. However, she stressed that it would be unacceptable and illegal for municipalities to bear the brunt of the financial burden by reducing their capital expenditures.

For 2024, the total subsidy for municipalities was set at 420 million, and the budget for 2025 will allocate 460 million to the sector, ensuring that municipalities can continue to fund their capital projects, albeit with minimal increases.

Source: Nova TV