The National Assembly adopted, definitively, amendments to the state budget act and the state of emergency law. Money has been made available for combatting COVID-19, and measures introduced by the executive branch in the conditions of crisis have been amended.

The budget update for this year allows the state to take out a new debt of up to EUR 5.11 billion / BGN 10 billion/ for the whole of 2020. At the insistence of Finance Minister Vladislav Goranov the idea of financing from the IMF was dropped in view of attaining more favorable conditions by way of loans from other international financial institutions and the issuance of securities. The reason why the state budget was updated are the expectations that domestic consumption in the country will drop, exports and imports will shrink, and the level of employment will fall. The scenario the government assumes will unfold is that the economy will shrink by 3% year on year, the budget deficit will amount to EUR 1.75 billion / BGN 3.5 billion/, and unemployment will exceed 6%.

The amendments made in the state of emergency law reduce, drastically, the sanctions for non-compliance with the measures aimed at checking the spread of the epidemic, with the exception of those applicable for breach of the quarantine regime. For a walk in the park, for example, the fine is EUR 150 (BGN 300), instead of the previous EUR 2,500 / BGN 5,000/. In the event of a repeat offence, however, the fine goes up to EUR 500 /BGN 1,000/. The demands by businesses were taken into consideration for a change in the mechanism of state aid to enterprises affected by the crisis, known as 60/40. Besides the 60% for staff salaries, the state will now also cover 60 % of the social security owed by employers. The share capital of the Bulgarian Development Bank is raised by EUR350 million /BGN 700 million/ for guaranteeing the credits it is going to issue. Thus the state aid for businesses via the bank amounts to EUR 700 million /BGN 1.4 billion/. Small enterprises will be able to take out interest-free credit of up to EUR 50,000 /BGN 100,000/. All people who receive unemployment benefits will be able to work under a contract of employment with farmers under a lighter regime without losing their right to receive benefits from the “Unemployment ” fund. Political parties will not receive state subsidies until the state of emergency is lifted.

Today the State Gazette promulgated the decision of the National Assembly, on the proposal submitted by the Council of Ministers, by force of which the duration of the state of emergency on the on entire territory of Bulgaria is extended until 13 May, 2020.

Edited by Stoimen Pavlov