MPs Adopt Extension Law for Budget on First Reading

The MPs approved in first reading the amendments to the so-called extension law for the budget with 174 votes 'for', 23 'against' and no abstentions. All political forces supported it except 'Vazrazhdane', which was 'against'.

The amendments extend the validity of the Law on the Collection of Revenues and the Execution of Expenditures in 2026 until the adoption of the Law on the State Budget of the Republic of Bulgaria for 2026, the Law on the Budget of State Social Security for 2026 and the Law on the Budget of the National Health Insurance Fund for 2026, in implementation of Art. 87, para. 4 of the Public Finances Act. In the current version, the extension budget had a term of validity until the end of March.

The bill proposes a mechanism for financing the increased expenses resulting from the one-time indexation of remunerations in the budgetary sector and from the increase of the minimum wage, as well as the increase of social payments resulting from normative acts that have entered into force, including the transfers for the municipalities, can be financed also at the expense of funds from the previous year.

The bill creates the opportunity for municipalities to make expenses taking into account normative acts that have entered into force. It is regulated that the mayor of the municipality can finance expenses for local activities in amounts greater than the expenses for the same period of the previous year, up to the amount of the municipality's own revenues for the relevant period, the budgetary relations with the central budget and with other budgets and accounts for funds from the European Union and the municipality's loan funds.

An opportunity has been created for the Council of Ministers to negotiate and conclude an agreement with the European Commission for a loan of up to EUR 3.26 billion to receive financial support in the form of a loan under the Instrument 'Security of Europe (SAFE) through strengthening the European defense industry' subject to subsequent ratification, as well as the possibility for the Council of Ministers to take actions for changes in the Medium-Term Program for Debt Issuance on the international markets in connection with the application of Art. 39 of the Law on the Introduction of the Euro in the Republic of Bulgaria.

The deadline for proposals between first and second reading was shortened to three days.