site.btaUPDATED 2025 Budget Extension Act Revisions Approved Conclusively by Parliament

The Bulgarian Parliament passed on second reading the 2025 Budget Extension Act.

The 2025 Budget Extension Act as amended and supplemented will remain in effect until the adoption of a regular 2026 State Budget Act. The original budget extension law applied until March 31, 2026.

Additional expenditure and transfers under the State budget, arising from acts of the National Assembly and the Council of Ministers that have entered into force, specifically those related to increases in salaries and social payments, as well as higher spending on fuels and energy, may be financed using available funds carried over from the previous year.

Until a regular budget is adopted, municipal budget expenditures may not exceed those for the same period in 2025. However, additional spending resulting from statutory acts already in force may be covered using municipalities' own revenues.

The amendments further stipulate that a mayor may finance expenditures for local activities at levels exceeding those for the same period of the previous year, up to the amount of the municipality's own revenues for the relevant period, as well as of budgetary relations with the central government budget, with other budgets and accounts for EU funds, and the municipality's borrowing.

At second reading, MPs also approved that the earmarked subsidy for capital expenditure may be converted into a transfer for other targeted municipal expenses, specifically for carrying out urgent current repairs of municipal roads, street networks and buildings that are public municipal property, under terms and procedures set by an act of the Council of Ministers. In addition, Parliament granted municipalities the right to spend their carry-over surpluses beyond the limits previously imposed on them.

Caretaker Finance Minister Georgi Klisurski commented that it is not good practice for earmarked capital subsidies to be transferred for current repairs. He explained that this means that when municipalities have allocated funds for building a new kindergarten, they will now have the option, at the mayor's discretion, to halt the project and instead use the money to patch up a couple of hundred metres of potholes.

Under the 2025 Budget Extension Act, the Council of Ministers will be able to negotiate and agree with the European Commission a loan of up to EUR 3.26 billion under the Security Action for Europe (SAFE) Instrument for financial assistance for investments in defence capabilities. The agreement will be subject to ratification.

The law provides for the Council of Ministers to issue EUR 91.9 million State guarantees for financing an extension of the Bulgartransgaz gas-transmission infrastructure in connection with the implementation of the Vertical Gas Corridor linking Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova.

The deadline was extended until the year's end for all family benefits under the Family Allowances Act to be paid exclusively in cash.

In plenary, There Is Such a People spoke in favour of setting the pay of young doctors and medical specialists at 125% of the average public sector salary and of capping cash payments at EUR 10,000. Both proposals were rejected.

A proposal by MRF-New Beginning to allocate an additional EUR 6.5 million to the budget of the Energy and Water Regulatory Commission for electricity meter inspections in view of recent complaints about high electricity bills was also rejected. The party argued that otherwise consumers would have to cover these costs themselves.