Parliament Passes Amendments to Budget Extension Law: What's Changing?

The Parliament adopted on second reading the amendments to the so-called extension law for the budget.

With the approved amendments to the Law on the Collection of Revenues and the Execution of Expenditures in 2026, the effect of the so-called extension budget is extended until the adoption of a regular budget for 2026. The initially adopted extension law for the budget had a deadline until the end of March.

On second reading, the MPs also adopted that the targeted subsidy for capital expenditures can be transformed into a transfer for other targeted expenditures of the municipality for carrying out urgent current repairs of municipal roads, street networks and buildings, public municipal property, under conditions and in accordance with the procedure determined by an act of the Council of Ministers. In addition, the parliament gave municipalities the right to spend their transitional balances above the limit set for them.

The caretaker Minister of Finance, Georgi Klisurski, commented that it is not a good practice for the targeted subsidy for capital expenditures to be able to be transformed for current repairs. This means that when the municipalities have provided funds for the construction of a new kindergarten, now they will have the opportunity, if the mayor deems it appropriate, to stop the entire project for the kindergarten and patch up 200-300 meters of potholes, he commented.

The amendments give the Council of Ministers the opportunity to negotiate and conclude an agreement with the European Commission for a loan of up to 3.26 billion euros to receive financial support in the form of a loan under the Instrument “Measures for the Security of Europe (SAFE) through the strengthening of the European defense industry“ subject to subsequent ratification.

A text was finally adopted that provides for the Council of Ministers to issue state guarantees in the amount of nearly 91.9 million euros for the financing of the expansion of the gas transmission infrastructure of "Bulgartransgaz" in connection with the implementation of the Vertical Gas Corridor, which connects Bulgaria, Greece, Romania, Hungary, Slovakia, Ukraine and Moldova.