A deficit of 5.7%, a record for the last 12 years, is set in the budget presented yesterday by Finance Minister Galab Donev. Difficult times are coming, the Finance Minister also warned, but promised that incomes will not be reduced.
What is set by the government of „Progressive Bulgaria“ in Budget 2026?
„A desperate demonstration of fear. Zero reform. Shocking. There is no need for such a budget. Bulgaria deserves a budget with a 3% deficit. Not to mention that it should be balanced. We do not have a problem in the country – we have no recession, we have no disasters, we have no war, we have no pandemic, we have no waves of migrants“, said Nikola Yankov.
“The budget lacks all reforms. There are no cuts in spending. The fact that civil servants will start paying their social security contributions will be compensated by an increase in salaries. 25% are social and pension payments. 25% are administration expenses. 15% are healthcare expenses. 15% are capital expenses. They have become 80% in total. The remaining expenses are for defense, education, culture. If you are doing a reform, you have to look at the big pens. There is no reform in the state administration, there is no merger of structures“, he added.
The figures set are also surprising for economist Vladimir Sirkarov. According to him, “Progressive Bulgaria“ is taking steps back from its announced program.
„No cuts are being made. Changes must be made in the expenditure side. This is not being done out of concern about how society will accept these changes. If they are not made now, over time the chance of doing so decreases. Previous governments are at the heart of the situation we are in at the moment“, commented Sirkarov.
Sheryo Nozharov commented that the budget is “built on mathematical absurdities, legal paradoxes and internal contradictions“.
„On the one hand, within the forecasts until 2028, the deficit is set at 3% on a cash basis. At the same time, the debt is growing from 37.7 billion euros to 50.5 billion euros – we are crossing the psychological limit of 35.2% of GDP debt. There is no way you can achieve fiscal consolidation of 3% and your debt will explode. The set 3% deficit in 2028 is on a cash basis. On an accrual basis it is 3.3%. That is, even in 2028 we will not enter the parameters. This is an illusion“, explained Nozharov.
“Legal paradoxes shine with a big red light. In violation of the Public Finance Act, the Ministry of Finance has been given the right to transfer expenses from one department to another. The ceiling for expenses for certain departments does not apply and can be changed by decrees of the Council of Ministers. The forecast and the law itself seem to have been made by two different teams. The forecast is clearly for the EC and it talks about consolidation and discipline. There is no reduction in expenses in the law, but more debts. "Inflation is much more moderate than usual," the economist added.