Podcast in English
Text size
Bulgarian National Radio © 2024 All Rights Reserved

MPs raise their salaries, slash public administration financing by 10 percent

БНР Новини
Photo: BGNES

One of the fundamental reforms - if “reform” is the correct word to use in this specific case – the authorities envisage with national budget 2015, is to cut financing for salaries in public administration. They say that would keep the budget deficit within 3 percent of the GDP, as stipulated by the EU.

In Bulgaria a little over 3 million people are employed; a quarter of them in the public sector, i.e. they receive their salaries from the national and local budgets. This expenditure isn’t too much, nor is it too little seeing as the average monthly salary is EUR 450.

Sociologists, politicians and economists all agree that the most valuable asset in any business or social system is the human resource. Because intelligent growth, something on which both Europe and Bulgaria have been setting such great store by, is impossible without the brains, the skills, the quests, the innovations and the work of people, experts, administrators. In Bulgaria’s case this is even more important as the country is small and poor and the only resource it can hope to develop with some measure of success is nature and people.

But the budget salary cuts in the administration are a manifest gesture of contempt for the human factor, for the role people play in modern society. We can never expect the administration of the country, of the individual public institutions and structures to improve while material incentives for the people working there are being curtailed.

Paradoxically, parallel with the redundancies and salary cuts in public administration, the Bulgarian authorities have been making considerable efforts to convince Brussels how important the problems of human resources are and just how dear to their heart the outgoing Operational Programme Administrative Capacity and the similar new Operational Programme called Good Governance is. The new operational programme which will cover the 2014-2020 period has as its top priority “Good governance and access to quality administrative services” and will spend EUR 500 million for financing measures to this aim.

So, on the one hand we are cutting staff financing, but on the other we want Brussels’ financial support for improving the way the public administration is functioning.

This glaring disparity and the negative results the new restrictive measures against public administration staff are bound to have did not go unnoticed even by current cabinet ministers, or by the trade unions who firmly opposed them.

One curious and significant fact, illustrating the incoherent state policy pursued with regard to earnings is that a little before they decided to slash salaries in the public sector, the MPs actually raised their own pay, so now their base monthly salary stands at over EUR 1,300.

English: Milena Daynova




Последвайте ни и в Google News Showcase, за да научите най-важното от деня!
Listen to the daily news from Bulgaria presented in "Bulgaria Today" podcast, available in Spotify.

More from category

Bulgaria and US to exchange tax information automatically

Bulgaria and the US have already signed an agreement on the automatic exchange of tax information.  The document was signed by Deputy Prime Minister and Finance Minister Lyudmila Petkova and US Ambassador to Bulgaria Kenneth Merten. "Administrative..

published on 5/31/24 4:02 PM

Business climate marks improvement of 0.6 points in May

In May, the economic situation in the country improved for a second month in a row. There was an improvement in retail trade, construction and services, but there was a decline marked in industry.  In construction, industry and services, no price..

published on 5/30/24 1:12 PM
Bulgarian National Bank building

Within the framework of the budget deficit the government takes on new 3-year debt

The Bulgarian National Bank held an auction for the sale of securities with 3-year maturity at a 3% interest rate. At the auction, the Ministry of Finance offered bonds worth EUR 150 million. Interest will be paid once in 6 months, with the loan..

published on 5/28/24 9:19 AM