2008 National Budget Act Provides for State Administration to Be Reduced by At Least 12% By Mid-2008

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2008 National Budget Act Provides for State Administration to Be Reduced by At Least 12% By Mid-2008

Bulgaria's Parliament Wednesday passed conclusively parts of the 2008 National Budget Act requiring from first-level budget spending units, including municipalities with delegated state activities, the National Social Security Institute and the National Health Insurance Fund, to implement measures to cut their staff size by at least 12 per cent by the end of June 2008.

An exception to this provision will be organizations and activities whose funding - pursuant to a statutory act is based on unified spending standards or regulations, as well as creative staff in cultural institutions. The MPs rejected a motion for exempting research and development staff in research institutions from the 12 per cent cuts.

Other texts voted on Wednesday stipulate that as of January 1, 2008, all schools will implement the system of delegated budgets. Their principals become second-level budget spending units.

The MPs also voted that schools located far away from other schools and thus impossible to be closed down as this would impair access to education, will be eligible for additional financing. The criteria determining these so-called "protected" schools and the terms and conditions for additional financing will be laid down by the Council of Ministers.

The Council of Ministers will make available additional funding of 7 million leva from the executive budget for capital outlays of the St Kliment Ochridski University of Sofia which will be used for maintenance of its four buildings that are monuments of culture.

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