The ruling coalition in Bulgaria has decided not to increase taxes or social security contributions while preparing this year's budget. Prime Minister Rosen Zhelyazkov confirmed this after the Joint Governance Council meeting but did not elaborate on what spending restrictions would be implemented to maintain the budget deficit at 3%.

He stated that discussions covered specific measures regarding both expenditures and revenues to ensure that the investment program for both central and municipal governments continues as planned. Additionally, he highlighted other key areas such as sanitation while stressing that the government aims to submit a request for a convergence report on meeting the eurozone membership criteria after parliamentary approval of the budget.

Zhelyazkov assured that the draft budget would comply with legal requirements, with expenditures capped at 40% of GDP and a budget deficit not exceeding 3%. He reiterated that the government would not introduce any extraordinary fiscal measures, nor would it increase the tax or social security burden. The proposed budget would maintain the existing VAT structure.

Regarding Bulgaria’s currency, Zhelyazkov reaffirmed that the exchange rate of the Bulgarian lev to the euro remains fixed at 1.9583 and is protected by an act of the National Assembly, ensuring its stability.

He also called on the MPs from "We Continue the Change – Democratic Bulgaria" (WCC-DB) to clarify whether they would support a budget that aligns with the requirements for eurozone entry.

Alongside Zhelyazkov, Deputy Prime Ministers Atanas Zafirov from BSP-United Left and Grozdan Karadjov from "There Is Such a People" (TISP) were also present at the media briefing.

Sources:

• BTA
• BNR