Bulgaria's Finance Minister Defends 2025 Budget and Addresses State Stores Initiative

Politics | March 24, 2025, Monday // 10:00
Bulgaria: Bulgaria's Finance Minister Defends 2025 Budget and Addresses State Stores Initiative

Finance Minister Temenuzhka Petkova discussed the recently adopted 2025 national budget, emphasizing that it was a step toward stabilizing Bulgaria's public finances. She explained that the budget, while not perfect, is the best possible given the circumstances and serves as the foundation for financial stabilization. According to Petkova, the PP-DB government, which previously managed public finances, had increased spending and taken out loans, creating an unfavorable financial situation. She also criticized the execution of Budget 2024, pointing out that the distribution of funds to municipalities was flawed.

Petkova assured the public that the 2025 budget did not involve new expenditures and refuted claims of a budgetary hole. She highlighted that health insurance spending has increased by nearly 6 billion leva compared to previous years. The minister also pointed out that her party, GERB, had not had any influence on public finances over the past four years, and the management of public finances was solely under the control of Asen Vassilev.

Regarding the 2025 budget, Petkova explained that it addresses key areas such as raising teachers' salaries, increasing pensions from July 1 according to the "Swiss rule," and allocating funds for municipal programs. She added that the budget's revenue targets were ambitious and aimed at covering expenses accumulated in recent years. Specifically, she mentioned plans to increase VAT revenues by 6 billion leva as part of the government’s efforts to combat the shadow economy.

On the topic of reforms, Petkova stated that Budget 2025 includes measures to combat tax evasion, particularly in VAT, but did not go into detail about the specific changes. She also addressed concerns over the energy sector, promising to halt the financial losses by imposing a tax on excess profits from energy companies. While questions about external debt and capital expenditures were raised, Petkova dismissed speculation about these topics, describing it as false.

The Finance Minister also clarified the ongoing debate about private hospitals purchasing medicines through public procurement. She explained that this provision is in line with existing public procurement law, and any changes would require amendments to the Public Procurement Act, which is currently under discussion with the European Commission.

One of the more controversial topics Petkova discussed was the proposal to establish state-owned stores in post offices, initially suggested by Delyan Peevski. She explained that this idea is still under consideration, and while no concrete plans have been made, it remains a possibility. Petkova stated that before moving forward with the creation of such stores, a comprehensive risk analysis will be conducted. While she did not specify the number or locations of these stores, she confirmed that a capital of 10 million leva would be allocated for the project, with the potential for it to increase depending on the analysis.

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Tags: budget, Petkova, Bulgaria

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