The leading news today came from Parliament where a budget revision was approved by the budget commission at first reading. Still, the political parties have to reach consensus on the changes proposed by the caretaker cabinet. Otherwise, political tension heightened with the day on which President Rumen Radev must hand a mandate to form government to a party of his choosing.
The budget commission gave the green light to budget revision
The budget commission in parliament accepted at first reading the changes in to the state budget and the budgets of National Health insurance Insurance Fund and National Social Insurance proposed by the caretaker cabinet. The revision is expected to provide redistribution of expenses for additional 1.8 billion levs (920 million euro) with revenues of 2 billion levs.
The main changes include increased expenses for Covid-tackling measures because of an expected fourth wave of the pandemic and continuation of the supplement of 50 levs to the amount of the state pensions.
Bank deposits reach nearly 100 billion levs
Deposits of the non-government sector totalled 98.222 billion levs as at end-July, up 11.8% y/y, according to statistics from the Bulgarian National Bank. Deposits of non-financial corporations were 30.6 billion at the end of July 2021. Compared to the same month of 2020 they increased by 15.2%. On the other hand, deposits of financial corporations decreased by 2.5% on the year in July 2021 and at the end of the month they totalled 3.717 billion levs. Despite zero interest rates on deposits for individuals and negative interest rates for businesses, their volume continue to grow. Mortgage loans grew by 15.1% to 13.125 billion levs.