Finance Ministry: If there is No New Budget by June 10 - Bulgaria could only Spend as much as it Collects

Business » FINANCE | May 23, 2023, Tuesday // 16:47
Bulgaria: Finance Ministry: If there is No New Budget by June 10 - Bulgaria could only Spend as much as it Collects

If after June 10 there is no adopted budget for the year or a new extension of last year's budget, the state will only be able to spend as much as it collects. This becomes clear in the response of the Bulgarian Ministry of Finance after a question from the National Radio whether, in the worst case scenario, there will be funds for pensions and salaries in the public sector. The action of the so-called extension law on the budget ends precisely on June 10.

Since it is now almost practically impossible to pass an entirely new budget for the year by June 10, the most likely hypothesis is that the MPs will vote another extension of last year's budget.

A direct answer to the question of whether the Ministry of Finance is preparing a proposal for such an extension was not given, despite the inquiry from the radio, but the clarification is made that in the event of a new extension, "the systems will be financed as in the first months of the year under the previous order". This means that the expenses will be at the level of the same period for 2022, taking into account acts of the National Assembly, the Council of Ministers and other regulatory administrative acts that provide for additional or reduced budget funds.

Virtually no costs can be reduced, except for savings from unrealized activities and projects of first-rate budget managers. One-time expenses for the same period last year will be counted as a reduction, the ministry specifies.

In the event of a non-adopted budget after June 10 and on the condition that the so-called extension law, in order to finance expenses and transfers after June 10, 2023, mandatory according to the Law on Public Finances, on the proposal of the Council of Ministers, the National Assembly should set a new deadline for collecting revenues, for making expenses and for providing transfers.

In this case, the expenses and transfers provided must be equal to the amount of received income, aid and donations and in compliance with the fiscal rules under the Law on Public Finances, the Ministry of Finance adds.

Follow on Twitter and Facebook

Write to us at

Информирайте се на Български -

We need your support so can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: finance, budget, extension, expenses

Bulgaria news (Sofia News Agency - is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." (Sofia News Agency - and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria