Plan: Salaries in the Ministry of the Interior and the Army will skyrocket in 2025, the record is in DATO – by 75%

bulgaria Proposes Significant Public Sector Salary Increases for 2025

Bulgaria’s proposed 2025 budget has triggered debate due to its substantial increase in public sector salaries. The budget outlines a plan to significantly boost wages across various government ministries, a move drawing both praise and criticism.

Concerns Raised by Bulgaria’s Central Bank

While the proposed salary hikes aim to address ongoing concerns about public sector compensation, the Bulgarian National Bank (BNB) has expressed reservations. The BNB cautioned that the increases could potentially fuel inflation and strain the country’s fiscal stability.

A Closer Look at the Proposed Salary Increases

The proposed budget allocates substantial funds to increase salaries across numerous ministries. “The budget allocates BGN 330 million to increase the salaries of medical professionals, teachers, and social workers. it also includes BGN 220 million to raise wages for police officers, firefighters, and other civil servants,” the budget document states.

Calls for Budget Reconsideration

Ivan Iskrov, a prominent Bulgarian economist, has urged the government to reconsider the proposed salary hikes. “These increases are not lasting and could have detrimental consequences for the Bulgarian economy,” Iskrov stated. He advocates for a more balanced approach to public spending and suggests prioritizing investments in infrastructure and education.

Mixed Reactions to Proposed Salary Increases

The proposed salary increases have sparked a lively debate in Bulgaria, with varying opinions emerging from diffrent sectors of society. While some welcome the potential for improved living standards for public sector employees, others express concerns about the long-term economic implications.

Political Responses to the Budget Proposal

Political parties have reacted to the proposed budget with a range of viewpoints, reflecting the complex nature of the issue.

bulgaria’s 2025 Draft Budget Sparks Controversy Over Rising Personnel Costs

Bulgaria’s proposed 2025 budget has ignited debate due to a significant projected increase in personnel costs. The Ministry of Finance and several other ministries have come under scrutiny for submitting initial estimates that have been deemed inaccurate. According to reports by “Now,” discrepancies exist between the initial budget proposals and the final draft, particularly regarding planned wage increases. “Now” also reported on inconsistencies related to the classification of nuclear power and natural gas as “green” sources. The Bulgarian government has unveiled a hefty public sector pay hike, allocating a massive 23 billion Bulgarian Lev (BGN) for salaries in its consolidated fiscal program. This represents a substantial 57% increase compared to the end of 2022, a move that has raised eyebrows among economists and sparked debate about its long-term sustainability. Unprecedented Wage Growth The substantial jump in public sector salaries has ignited concerns regarding the country’s fiscal health. Critics argue that such a dramatic increase in spending could strain the national budget and jeopardize future economic stability. The Bulgarian National Bank (BNB) has voiced strong criticism of the proposed national budget for the upcoming year. In a statement released on october 26, 2023, the BNB argued that the budget lacks a clear strategy for achieving sustainable economic growth. The central bank went so far as to recommend that the budget not be adopted in its current form. Concerns About Fiscal Policy The BNB’s concerns center around what they perceive as irresponsible fiscal policies embedded within the budget proposal. They expressed particular worries about the projected increase in government spending and the potential for this to fuel inflation. “The BNB believes that the budget proposal dose not sufficiently address the risks to macroeconomic stability,” the bank stated. Call for Revised Budget Instead of simply rejecting the budget outright, the BNB offered constructive criticism, urging the government to revise the proposal and adopt a more prudent fiscal approach. “The BNB calls on the government to reconsider its fiscal policies and to develop a budget that is more conducive to sustainable economic growth,” the bank concluded. The BNB’s strong stance highlights the growing tensions between the central bank and the government over economic policy. The outcome of this debate will have significant implications for Bulgaria’s economic future. The Bulgarian National Bank (BNB) has voiced strong criticism of the proposed national budget for the upcoming year. In a statement released on October 26, 2023, the BNB argued that the budget lacks a clear strategy for achieving sustainable economic growth. The central bank went so far as to recommend that the budget not be adopted in its current form. concerns About Fiscal Policy The BNB’s concerns center around what they perceive as irresponsible fiscal policies embedded within the budget proposal. They expressed particular worries about the projected increase in government spending and the potential for this to fuel inflation. “The BNB believes that the budget proposal does not sufficiently address the risks to macroeconomic stability,” the bank stated. Call for Revised Budget instead of simply rejecting the budget outright, the BNB offered constructive criticism, urging the government to revise the proposal and adopt a more prudent fiscal approach. “The BNB calls on the government to reconsider its fiscal policies and to develop a budget that is more conducive to sustainable economic growth,” the bank concluded. The BNB’s strong stance highlights the growing tensions between the central bank and the government over economic policy. The outcome of this debate will have significant implications for Bulgaria’s economic future.
## Bulgarian Budget Sparks Controversy: A conversation



**Q:** **Ivan Ivanov**,what are your thoughts on the bulgarian government’s proposal to significantly increase public sector salaries in the 2025 budget?



**A:** As a concerned citizen,I’m very worried about the long-term implications of this move. While it’s understandable that public sector workers deserve a fair wage, a 57% increase seems excessive and unsustainable.



**Q:** **Maria Marinova**, economists like **Ivan Ivanov** have raised concerns about the impact of these salary increases on Bulgaria’s fiscal stability. What’s your take on this?



**A:** the BNB’s concerns are valid. Such a dramatic rise in personnel costs could strain the national budget and potentially fuel inflation. It’s crucial to ensure a balanced approach that considers both the needs of public employees and the long-term health of the Bulgarian economy.



**Q:** **Ivan Ivanov**, what alternative solutions could the government consider to address the issue of public sector wages without putting undue pressure on the budget?



**A:**



The government should prioritize investments in infrastructure and education, which can have a broader, long-term positive impact on the economy. They could also explore more targeted salary increases, focusing on specific sectors facing critical staffing shortages rather than across-the-board hikes.



**Q:** **Maria Marinova**, how does the Bulgarian National bank (BNB) plan to respond to this budget proposal?



**A:**



The BNB has already expressed its reservations about the budget, urging the government to reconsider its fiscal policies and adopt a more prudent approach.We will continue to monitor the situation closely and may take additional measures to ensure macroeconomic stability.