site.btaBudget and Finance Committee Adopts Decision to Address Price Shock Caused by Oil Price Spikes
A draft decision to take measures against the price shock caused by high crude oil and natural gas prices was adopted on Thursday by the parliamentary Committee on Budget and Finance with 10 votes in favour, 7 against, and no abstentions. The draft decision, submitted by MRF - New Beginning Deputy Floor Leader Jordan Tzonev and a group of MPs, provides for the Council of Ministers to be tasked with taking urgent measures to limit the negative economic impact of high crude oil and natural gas prices.
It provides for the establishment of Energy Support for Businesses and Households Fund under the Ministry of Finance, which will administer the funds to support businesses and the public.
According to the draft decision, the fund's resources will come from the additional VAT revenues in the state budget resulting from the increase in the prices of Brent crude oil and LNG.
The basis for determining the additional revenues is the average market price of Brent crude oil and LNG for the month preceding the start of hostilities in Iran, compared to the current average market price for the same period.
The Council of Ministers is expected to determine the terms and conditions for managing the Fund. According to the draft decision, within the scope of its powers, the government may finance the fund through the Bulgarian Development Bank.
The Council of Ministers will have to develop and adopt measures to support the most vulnerable social groups of the population with incomes below the poverty line, including by expanding energy assistance programmes.
The caretaker Minister of Finance Georgi Klisurski said that some of the texts in the draft decision need to be clarified, as they would not work in their current form.
/RY/
Additional
news.modal.image.header
news.modal.image.text
news.modal.download.header
news.modal.download.text
news.modal.header
news.modal.text