The budget procedure for 2026 started today. Taxes remain unchanged, pensions will be increased by 7.8 percent from July 1 this year, and social spending for the most vulnerable groups will not be reduced. This was announced by Deputy Prime Minister and Minister of Finance Galab Donev. He made a statement on the state of the state budget and the planned measures in the budget procedure for 2026.
From his words it became clear that the state's financial deficit is 1 billion and 750 million euros. He explained that the automatic increase in the salaries of the prime minister, ministers, deputy ministers, heads of cabinets, regulatory bodies, law enforcement agencies, the judiciary and higher education institutions is being put to an end. In addition, revenue and expenditure measures will be proposed so that the deficit is within controlled limits and the possible limitation of the growth of the debt. In his words, strict financial discipline is being introduced.
"At the same time, we will propose to the representatives of the people to abandon the automatic linking of their salaries to the average salary in the public sector. We are setting a ceiling on the salaries of everyone employed in the budget sector, no one will receive a basic salary that is higher than that of the President of Bulgaria. The same restriction applies to members of the boards of directors, management bodies and others of public enterprises. We are reducing by 10% the costs of salaries and related social security contributions in the budgets from September 1 of this year, without reducing the individual salaries and remuneration of workers and employees in the budget sector. The reduction in expenses will be at the expense of reviewing the structures and optimizing the number of administration staff," said Donev.
"As expected, the state's finances are in full sync with the finances of the average Bulgarian family. Expenses exceed income, many bills remain unpaid, and loans are often resorted to. So far, the state budget has followed the rule: "We spend today, let the next ones think about it" - the results are as follows - a deficit of 1 billion 750 million euros by the end of April, another 2 billion and 550 million euros in expenses awaiting payment, 1 billion and 100 million in unpaid municipal projects for this year alone. In addition, in 2025, an advance corporate tax of EUR 363 million was withdrawn from banks, which has a negative impact on the revenue side of the budget for 2026. Another thing - an unfavorable impact on revenues, respectively the deficit for 2026, is also caused by the government's decision last year to distribute an interim dividend from state-owned companies in 2025, paid based on one hundred percent of their current profit as of June 30, 2025. Thus, a total amount of EUR 566 million and 700 thousand will not be received as revenue in the budget for 2026, since it was transferred in advance in 2025. Through these two operations, which pass for financial acrobatics, the fiscal target for 2025 was achieved, but today they make the task more complicated," said Donev.
"It is clear to me that I will make the budget line by line, but it is also clear to those before me that they patched the holes in the budget with advance payments or withheld non-payments. The categorical position of "Progressive Bulgaria" is that the fashion for patchwork budgets is over. We are closing the first and most visible taps through which public resources are leaking. This is a budget with which we say stop to the state feeders," he said.
„As of April 30, 2026, the deficit under the consolidated fiscal program amounts to 1.4 percent of GDP, amounting to one billion 750 million euros. The total amount of invoiced but unpaid capital and current expenditures under the national budget as of April 30, 2026 amounts to 655 million and 700 thousand euros, of which 214 million and 600 thousand euros in municipalities and 441 million and 100 thousand euros in ministries and departments. The total amount of the activity carried out under the national budget, for which invoicing is pending, amounts to 1 billion and 700 million euros, of which 196 million and 700 thousand euros in municipalities and 1 billion and 504 million euros in ministries and departments. In addition, old deferred liabilities in the amount of 197 million and 600 thousand euros have been inherited. The situation we find is a deficit of 1 billion and 750 million euros and expenses of 2 billion and 554 million euros, which should be paid”, announced Donev.
Galub Donev did not fail to congratulate the performer DARA for the historic success of "Eurovision". "In the budget for 2027 there will be another item - "Eurovision 2027". Thank you, Dara", he said.