The main parameters of the voted on first reading bill on state budget for 2015 set a ceiling on the expenditure of the Ministry of Agriculture and Food for 2015 and it is 227 million levs. Out of this amount for agriculture and rural areas will be allocated a total of 175 million levs; for fisheries and aquaculture – 6.3 million levs; to conserve and enhance forests and wildlife – 27 million levs and the budget programme Administration will get another 118.5 million levs. The ongoing costs are set at 15 million levs for public service for protection from harmful effects of water, which is assigned to the Irrigation Systems EAD. According to the norm, these funds cannot be spent for other purposes. Projected expenditure ceilings of the State Fund Agriculture for next year are 366.5 million levs, of which agriculture and rural areas – can get 333.4 million levs, while fisheries and aquaculture – 810,000 levs, and the budget programme Administration – can rely on 32.3 million levs.
Under the single area payment in 2015 a total of 1,255.8 million levs from EU funds for direct payments to farmers is planned to be accumulated.
Financing of market measures has a budget for next year amounting to 110.5 million levs, of which 74.1 million levs are from European funding and 36.4 million levs is national co-financing.
For the national direct payments, state aid and some market measures in the budget of the State Fund Agriculture will be provided a total of 300 million levs.
For carrying out the common agricultural policy, the overall funds for 2015 that the country plans to absorb from EU programs without national co-financing to them amount to 657.2 million levs and for Maritime Activities and Fisheries – 52.7 million levs. Next year expects the launch of a programme for rural development (2014-2020), which must be followed by a programme for Maritime Affairs and Fisheries. Their budgets and fields which will receive support have not yet been finally approved.
The draft budget is envisaged to maintain the tax preference for a reduced rate of excise duty on diesel used in primary agricultural production. For this purpose, 84 million levs were approved. The scheme will be implemented after the European Commission takes a decision to extend the period of its operation. The document provides for the retention of tax relief for farmers constituting state aid in the form of reimbursement of corporate tax of up to 60 percent. A condition for the application for the aid is a positive decision by the European Commission on the compliance with the rules on state aid.
From 1 January, an increasing of the minimum insurable earnings for farmers is envisaged to the extent of the minimum insurable income of other self-employed – from 240 to 420 levs per month. The Ministry of Agriculture and Food and the Parliamentary Committee on Agriculture and Food in the National Assembly proposed the increase of the minimum insurable earnings for farmers to be introduced from 2016 and the level of insurance for farmers to be increased gradually, it became clear from the report of the Committee on Agriculture. Days ago Minister Taneva said that between the first and second reading of the bill, this question has to be debated again, as a significant number of beneficiaries of subsidies to farmers will register, which will undoubtedly lead to the payment of social security income for 240 levs. However, according to Minister Taneva, the budget will have more income compared to last year.
She highlighted that in the course of the consultation procedure, the Ministry of Agriculture and Food has proposed increasing the running costs of its budget by 24.7 million levs, which is to be allocated to finance activities and the expenditures of the Bulgarian Agency for Food Safety of executive Agency for Hail Suppression, the regional Agriculture directorates and the Agricultural Academy.
