Fiscal Council criticizes indexation of incomes through the extended budget

The inclusion of social policies in the so-called extended budget, such as the indexation of the incomes of those employed in the budget sphere with the amount of annual inflation, compromises the principles of budget legislation and creates a dangerous precedent in the country's budget policy. This is how the Fiscal Council commented on the parliament's decision to extend the validity of the 2025 Budget in 2026, until the adoption of a new budget and to carry out a one-time indexation of salaries.

According to the council, the extended budget should be a temporary measure with a limited scope, guaranteeing only the continuity of state payments until the adoption of a regular budget. Unlike previous extended budgets, which strictly adhered to the structure of the previous year, the current one goes beyond these frameworks. It introduces significant changes in expenditures that are not consistent with long-term fiscal sustainability and bypass the normal debate on budget policy, the council pointed out. The Fiscal Council is an independent advisory body on fiscal management issues.

Editor: Miglena Ivanova
Photo: BTA