News

28 November 2023

Ombudsman Diana Kovacheva sent opinions to the President of the National Assembly Rosen Zhelyazkov and the relevant parliamentary committees on the Draft 2024 State Budget of the Republic of Bulgaria Act submitted by the Council of Ministers, on the Draft Budget of the State Social Security Act and the Draft Budget of the National Health Insurance Fund Act.

The Ombudsman's opinions are based on citizens' complaints and problems sent to the institution.

On the draft state budget act for next year, Prof. Kovacheva states that the update of the amount of monthly benefits for raising a child with permanent disability until the age of 18 and until completion of secondary education, but not later than the age of 20, set out in Article 8e of the Family Allowances for Children Act, is a long-awaited step and the planned increase in funds will be a great support for the families of children with disabilities. However, she draws attention to the need to introduce a mechanism for automatic updating of benefits.

She also points out another serious problem that is not addressed by the draft state budget act for next year – namely the amount of tax reliefs under Article 18 of the Personal Income Tax Act. The specified amount of BGN 7,920, which reduces the the annual taxable amount for persons with 50 and more than 50 percent reduced working capacity, has not been updated since 2008.

“It should be noted that at the time of introduction of the relief, the minimum wage was BGN 220, and over the years it has increased more than three times until 2023. However, no updating mechanism has been introduced for the amount of the tax relief”, argues  Kovacheva.

Another problem highlighted by the Ombudsman is the fact that the guaranteed minimum income is retained as the basis for determining the amount of targeted aid under Article 18 of the War-Disabled and War Veterans Act. According to Kovacheva, the failure to amend the normative act gives the feeling of unequal treatment and neglect of the needs and rights of a vulnerable group which is among the poorest in our society.

The issue with the amounts of social benefits under the Family Allowances for Children Act is also highlighted in the Ombudsman's opinion. Diana Kovacheva points out that for the second year in a row there is no update of the monthly allowance for raising twins (Article 7 (6) of the Family Allowances for Children Act), which remains at BGN 75, and of the amount of the one-off benefit or twins (Article 6a (1) of the Family Allowances for Children Act) which is BGN 1,200.

With regard to the State Social Security Budget Act for 2024, the Ombudsman notes that the steps taken in the draft act are in the right direction, but unfortunately even with this minimal increase there is no possibility of approaching the minimum of life pay and the necessary real income growth.

“While the increase of the minimum wage and the minimum monthly amount of the social insurance income for self-insured persons is a proposal that is necessary and must be made, the increase in pensions only under Article 100 of the Social Insurance Code, set as a forecast for the next three years, unfortunately does not resolve the problem with their low level and with the continuous reduction in the purchasing power of retired people,” writes the public defender. She proposes as one of the steps to tackle the problem with low pensions to recalculate all pensions on the basis of the average social security income for the previous year.

She also indicates another problem left unresolved, i.e. the length of service acquired by disabled persons after the date of disability is not taken into account for the acquisition of entitlement to disability pension due to general illness.

In her opinion to the State Social Security, the Ombudsman also insists on speeding up the resumption of payment of citizens' due pensions.

The Ombudsman also emphasizes that the proposed increase in the maximum social insurance income from BGN 3,400 to BGN 3,750 is proposed without a clear formula.

“It is understandable that the maximum social insurance income is not a static value, but I believe that its level should be considered in relation to the average insurance income, the increase in the minimum wage and the levels of the minimum, average and maximum pensions”, the public defender points out.

In her opinion, Kovacheva categorically does not support the retention of the amount of the minimum unemployment benefit. According to her, unemployed persons, as well as persons receiving cash benefits, are one of the highest social risk groups, given their low incomes. For that reason, she does not support the retention  of the minimum daily unemployment benefit of BGN 18.00.

 “I find positive the decision to equalize the minimum allowance for raising a child aged from 1 to 2 years with the miniumum wage, but I express my concern that this decision was not enshrined as a legal principle. I think it is necessary to include it in the Social Insurance Code. It should be set out there that the minimum allowance for raising a child aged up to 2 years, as well as the allowance for raising a child aged up to 8 years by the father (adopter) are equalized with the amount of the minimum wage. Thus, the update of allowances will follow the increase in the minimum wage”, the Ombudsman writes. She also demands the one-off death allowance of BGN 540 be aligned with inflation.

In her opinion on the draft budget of the National Health Insurance Fund, the Ombudsman emphasizes that the proposed increase in health funding by BGN 1,136 billion is a positive step, but points out that this does not lead to a substantial improvement in citizens' access to health care, as has happened over the past 20 years. She also points out that the provision of more funds is not accompanied by a reform plan, which the system clearly needs.

Limits in outpatient and inpatient care are retained, but such restrictions are a prerequisite for violating the rights of citizens as patients and health insured persons, as well as the rights of medical care providers, and therefore should be abolished.

“As can be seen from the complaints and alerts received, the problem of non-payment or underpayment with public funds of medical devices and costly consumables in inpatient and outpatient care has not been resolved for several years now”, the Ombudsman writes and calls for an increase of their funding from the Health Insurance Fund.

She emphasizes that the institution receives complaints and signals indicating the existence of serious problems in the supply of medicines and access to medicines, including the absence or shortage of medicinal products in the pharmacy network.

She points out that medicinal products for the treatment of acute diseases of children in outpatient care are not paid from the NHIF, which puts children, especially from vulnerable groups, whose parents do not have the necessary funds to purchase them, at risk and impossibility to fulfill the prescribed treatment for their child in a timely manner. Therefore she insists that the medicines be funded from the NHIF.

She also draws attention to another problem – the lack of sufficient funds for preventive examinations, research and obstetric care for women without health insurance, which violates their rights and the rights of their children.

The Ombudsman also points out that the draft act does not provide for sufficient funds for the treatment of children and adults at home or abroad, as well as for payment of medical devices, highly specialised devices/devices for individual use, dietary food for special medical purposes and medicinal products for children.

In her opinion, Kovacheva recommends that the examination of bone density and its reading ("Osteodensitometry and interpretation") be free for all women after menopause, as well as for men of a certain age, given its social importance and the severity of possible complications.

She also insists that the issuance of electronic excuse notes for absences from school for health reasons should be paid from the NHIF.