Parliament passed the macro-framework of Budget 2011 after nearly three hours' debate on Thursday. The debates were broadcast live on the national radio and television.

The Thursday sitting was extended until the 2011 Budget Bill was adopted conclusively.

Revenues in the state budget amount to 16,076,047,300 leva, including 14,353,683,100 leva from taxes and 1,674,269, 600 leva non-tax revenue.

The largest amount of funds will come from VAT - about 6,400 million leva - and excise duty - 3,800 million leva. Income taxes of natural persons are expected to bring some 2,000 million leva, corporate tax should bring some 1,500 leva and the tax on insurance premiums introduced as of next year - 20 million leva.

Income from property is expected to bring in the most of non-tax revenue - 778,714,000 leva. Collected state fees should amount to 692,035,300 leva.

The Budget Committee motioned that expenditure amount to 18,236,787,600 leva, including 8,389,332,400 leva expenditure, transfers for 9,035,975,800 leva and Bulgaria's contribution to he common EU budget paid from the central government budget of 811,479,400 leva.

The budget balance is negative - minus 2,160,740,300 leva.

The subsidy for the judiciary is set at 282,205,000 leva, as the revenues are set at 105,500,000 leva and expenditures - at 387,705,000 leva.

Largest is the allocation for courts - to the amount of 195,368,000 leva and for the prosecution authority - to the amount of 154,908,000 leva.

The National Assembly budget is set as follows: expenditures of 53,000,000 leva, revenues of 2,300,000 leva and transfers of 50,700,000 leva.

The revenues of the Financial Supervision Commission for next year are defined at 8,277,200 leva, the budgeted expenditures are set at 5,360,300 leva. Next year's expenditures of the National Audit Office are set at 15,056,100 leva.

The expenditures of state bodies, ministries and departments

will be 5,815,997,300 leva. The budget target for the revenues is 1,241,695,200 leva. A total of 4,801,668,300 leva are allocated for subsidies and 25,831,300 leva, for transfers. The budget balance and financing are 253,197,500 leva

The biggest amount is set for the Interior Ministry - 1,006 million leva. The allocations for the Defence Ministry and the Ministry of Labour and Social Policy equal about 1,000 million leva.

Allocations for health care, culture and education were among the most debated issues in Parliament. Motions by the socialist Coalition for Bulgaria, Movement for Rights and Freedoms and Blue Coalition to increase spending under these items were voted down.

Health Ministry expenditures in 2011 are set at 712,000,000 leva. Of these, 40,000,000 million leva will be from own revenues, 347,800,000 leva from budget subsidies and 324,200,000 leva from transfers to the Ministry. Expenditures of the Ministry of Education, Youth and Culture are budgeted at

422,322,600 leva and of the Culture Ministry, at 104,569,100 leva.

The total subsidy to municipalities for activities delegated by the state is set at 1,791,646,300 leva. The provision reads that the relations between the central government budget and municipal budgets are possible to change by transfers for financial compensations by the state, without harming the budget balance.

State- and municipal-owned companies and sole traders with state and municipal participation which have let the corporeal immovables made available to them will pay in half of the obtained rental charges.

The minimum fiscal reserve by December 31, 2011 is set at 4,500 million leva.

In addition, the government may authorize the Finance Minister to issue bonds on the international markets, worth up to 2,000 million leva, or the equal amount in a different currency.

MP Georgi Pirinski of Coalition for Bulgaria said that this provision was inconstitutional. Under the Constitution, the National Assembly approves the issue of government bonds. In his first commentary during the second-reading debates on the budget, Finance Minister Simeon Djankov said that "nothing is in breach of the Constitution.

Source: BTA