The cut in social security contributions resulted in more than two billion leva in savings for Bulgarian business, the head of the National Social Security Institute Yordan Hristoskov told the parliamentary budget and financing committee, as quoted by Dnevnik daily on April 4.

At the same time, the Pensions Fund, covered by the state budget, has been accruing a higher deficit. According to Hristoskov, to stem this deficit all revenues from privatisations and concessions should flow to the Pensions Fund.

He argued the social security rate in Bulgaria hovered around the EU average, hence a further cut was immaterial and would burden the budget. All the more, a further cut to social security contributions was not necessary because it would hardly lead to an increase in revenues nor would narrow the share of grey economy.

Hristoskov supported the idea for the state assuming a higher portion of the social security burden. On even burden allocation, at 10:10 employer/employee share-out, that would mean 400 million leva in annual profit for employers and 72 million leva in expenses for workers, he added.