January 31 (BTA) - The Council of Ministers approved the
draft of the 2022 State Budget and an update of the Medium-term
State Budget Forecast for 2022-2024, which underpins the
proposed state budget scheme. The ministers also approved the
draft budgets of Public Social Insurance and the National Health
 Insurance Fund (NHIF) for 2022, the Government Information
Service reported on Monday.

The Medium-term State Budget Forecast stipulates that Bulgaria's
 GDP growth will accelerate to 4.8 per cent in 2022 and year-end
 inflation will decrease to 3.1 per cent.

In 2023 and 2024 year-end inflation will drop further to 2.4 per
 cent and 2.0 per cent, respectively.

The deficit under the Consolidated Fiscal Programme (CFP) is
projected at 4.1 per cent of GDP in 2022 (taking account of the
strain to be caused by anti-COVID-19 measures), with subsequent
annual steps towards fiscal consolidation, so that by 2024 the
CFP deficit will have fallen to 3.0 per cent of GDP.

According to the Forecast, state budget revenues will grow
nominally throughout the whole three-year period. The
revenues-to-GDP ratio will be 40 per cent in 2022, 40.3 per cent
 in 2023 and 40.2 per cent in 2024.

State budget expenditures are projected to grow in nominal terms
 between 2022 and 2024, but as a percentage of GDP they will
decrease from 44.2 per cent to 43.2 per cent.

The government debt is expected to reach 47.1 billion leva by
the end of the three-year period, based on relevant assumptions
and projected net debt financing.

According to the draft Public Social Insurance Budget for 2022,
the average monthly pension will reach 573.76 leva, excluding
the 60 leva COVID-19 supplement, which will be paid out to all
pensioners between January and June.

The draft Public Social Insurance Budget provides for all
pensions to be increased by 6.1 per cent starting July 1. When
all one-time supplementary sums are included in the equation,
the pension increase is  expected to reach 13.4 per cent.

Starting July 1, the minimum monthly pension will be increased
to 392.57 leva, while the maximum pension will be 1,500 leva. A
total of 14,119,000,000 leva have been allocated for paying out
pensions, which is 1,072,000,000 leva more compared to 2021.
 
The benefits for raising a child under nine are to be raised
from 650 to 710 starting April 1. The minimum unemployment
benefits are to be increased on April 1 from 12 leva to 18 leva
per day, while the maximum will be set at 85.71 leva from the
current 74.29 leva per day.

The draft Public Social Insurance Budget also proposes
increasing the maximum monthly contributory income from 3,000
leva to 3,400 leva, as well as the social insurance contribution
 threshold for self-employed persons from 650 leva to 710 leva
per month. The one for farmers and tobacco growers will be
increased from 410 leva to 710 leva as well.

Cabinet also approved the 2022 NHIF draft budget, which includes
 6,060,749,900 leva of revenues and transfers. Health insurance
revenues will add up to 5,802,517,100 leva, of which
3,759,192,600 leva will come from health insurance contributions
 and 2,043,324,500 leva from transfers. The revenues from health
 insurance contributions will be 433,888,500 leva more compared
to 2021.

Total NHIF budget expenditures in 2022 will amount to
6,050,749,900 leva, which is 604,437,000 leva more compared to
2021.

The funds for health insurance payments amount to 5,678,270,100
leva, which is 560,210,700 leva more compared to last year.
RY/MY/VE

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