Yesterday, the Association of Bulgarian Employers' Organizations (AOBR) issued a declaration in which it strongly condemns the draft budget for 2026.
“These are not just technical shortcomings, but a systematic attitude towards workers and businesses in Bulgaria“, said the rotating chairman of the AOBR for 2025 and chairman of the Management Board of the Association of Industrial Capital in Bulgaria (AIKB) - Rumen Radev, in the program “Face to Face“ on bTV.
“We received the budget parameters literally at the last minute, with a notification that the budget commission should meet today, and the tripartite council tomorrow. These are absurd deadlines. But the problem is not only with them, the lack of dialogue is indicative. We asked for a conversation back in September, but our positions were ignored“, Radev said.
“The budget law provides for additional debt issuance of up to 10.5 billion euros in 2026. But let me remind you - in the current year 2025 alone, out of the six, we have already borrowed 5.2 billion. In 2024, the debt was 24.2 billion euros, in 2025 it is expected to reach 31.3 billion, and in 2026 - 37.6 billion euros. As a relative share, this means an increase from 23% in 2024 to 27.8% this year and 31.3% next year. We are borrowing“, he said.
And he defined the budget as “populist“ and warned that it is betting on unrealistic revenues.
„The expected performance for 2025 is 11 billion euros in VAT revenues, and the new budget foresees 15 billion - 4 billion more. This is absolutely unrealistic. The director of the National Revenue Agency himself did not show confidence that he would be able to collect them“, said Radev.
Former Social Minister Hristina Hristova supported some of the criticism, emphasizing that “insufficient dialogue always leads to negatives“.
„Good dialogue gives rise to reasonable proposals and a sense of order and justice. But let's talk about the parameters - 3% deficit and 2.7% GDP growth are promised. These are good figures, but behind them there are doubts about their realism. Revenues from VAT and the Sustainability Plan may not be realized“, said Hristova.
She warned that raising the minimum social security income and the minimum wage will increase the burden on employers.
“The social security contribution is growing, and 60% of it is paid by the employer. This is a serious burden. Also, the inclusion of the European minimum wage directive was done incorrectly – it eliminates collective bargaining“, she added.
Despite the criticism, Hristova also pointed out some positive aspects of the budget.
“A priority is seen for education - an increase in the standards for student living and funds for state-delegated activities. This is good. The program for investments in municipalities is also good, especially for water supply and infrastructure – highways “Hemus“ and “Struma“. But payments to municipalities are transferred to the Bulgarian Development Bank, which raises questions - is it not being done so as not to be counted in the deficit“, commented Hristova.