By Ivan Dimitrov, Sofiа, Bulgaria
On November 12, the Bulgarian Parliament adopted on first reading the balanced budget draft law for 2020 with top three priorities – income growth, education, and healthcare.
The government’s financial plan for the next year does not include any increase in taxes. This was duly noted by the Minister of Finance upon the initiation of the parliamentary debates where he referred to a 2017 Coalition agreement to not raise the issue of changing the tax system.
Moreover, the maximum social security contribution threshold will stay the same at about the equivalent of USD 1700. There will also be no change to well the minimum thresholds for economic activities and professions.
The “no surprises” approach taken by the government was criticized by the opposition which is asking for greater reforms and for development of state finance policy. Some members of the parliament called the draft law “more from the same” and stated that such a budget for 2020 cannot be supported.
Currently, the budget is subject to public discussion and the term for submission of proposals by the parliament members has expired. The second, final review and adoption of the budget law for 2020 by the parliament is yet to come.
– Ivan Dimitrov is in-house legal counsel at an international payroll and accounting company in Bulgaria.
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