07/18/11 18:37
(http://www.klassa.bg/)

NSSI’s wrong planning results in a BGN 320 mln budget deficit

“The deficit in the State budget is almost BGN 622 mln and BGN 320 mln of this amount is due to wrongly planned social security contributions. The remaining part results from uncollected corporate taxes, which is a direct reflection of the companies’ activities last year during the crisis,” Krassimir Stefanov, Executive Director of the National Revenue Agency (NRA) said yesterday on bTV. NRA’s head specified that the fulfilment of total revenues from taxes and social security contributions would be 96%.

“The social security contributions collected in the first half of the year amounted to BGN 1.485 bn, up BGN 138 mln, compared to the same period of 2010,” Rossen Bachvarov, Director of NRA’s Communications department, told Klassa. Around BGN 700 mln was collected from health insurance instalments, almost BGN 8 mln up, compared to 2010. The overall fulfilment of planned revenues from security contributions is BGN 145 mln up from last year,” added Bachvarov.

Let us remind our readers that the deficit of the National Social Security Institute (NSSI) had to be reduced by nearly BGN 700 mln in 2011. For this purpose, the insurance instalment was raised by 1.8%. Additional measures were projected for cutting costs and increasing collectability as part of a 25-year plan for the development of the pension system.

However, NSSI’s revenues of BGN 5.5 bn, planned in the State budget, proved to be overestimated and, according to the people in power, this cost Hristina Mitreva her position as head of the NSSI. Therefore, the figures had to be adjusted and the NRA must now collect BGN 3.4 bn in social security contributions until the end of 2011 from employers, workers and self-employed people, excluding the Government’s transfers to the NSSI. Another BGN 1.445 mln must be collected from health insurance instalments, NSSI sources said.

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