site.btaIncumbents Withdraw Proposal to Raise Government Debt Ceiling

The incumbents withdrew the proposal to raise the government debt ceiling by up to EUR 3.8 billion through an amendment introduced on Monday between the first and second readings of the bill to amend the budget extension act.

On Monday, MP Konstantin Prodanov of Progressive Bulgaria and Chair of the Parliamentary Committee on Budget and Finance presented to reporters measure proposals, including a reduction in the per-vote state subsidy received by political parties, the removal of the COVID-related pension supplement, and a revision of the government debt cap.

Prodanov said: "We propose to empower the Council of Ministers and the Ministry of Finance to obtain additional debt financing of EUR 3.8 billion. The funds will be used primarily for the advance financing of projects under the Recovery and Resilience Plan." He specified that the debt ceiling for 2025 was EUR 10 billion.

On Tuesday, during a session of the parliamentary Committee, Prodanov said that, in light of the criticism regarding the proposal to increase the debt ceiling and following a conversation with the Finance Minister Galab Donev, the proposal would be withdrawn.

To comply with the letter of the law, the proposals to raise the debt ceiling under the terms of the budget extension will be submitted at a later stage by the Council of Ministers with the necessary justification, Prodanov added.

The proposals to remove the COVID-19 pension supplement, as well as to reduce party subsidies, have not been withdrawn.