Finance Minister Galab Donev presented a detailed breakdown of some of the additional expenses included in the draft state budget for 2026, emphasizing that a large part of the funds are intended for already undertaken commitments and accumulated liabilities.
According to him, 48.5 million euros are planned for Bulgaria's hosting of the Giro d'Italia cycling tour, and 20 million euros - for the preparation of a future hosting of the Eurovision Song Contest, Nova TV reports.
Among the expenses included are 139.5 million euros for unpaid liabilities from previous years for current repairs and maintenance under the budget of the Ministry of Regional Development and Public Works. The minister specified that the amount covers only part of the costs arising from out-of-court agreements concluded in 2024 and 2025 to settle disputes related to delayed payments under contracts after 2021. The interest and legal costs on these cases for 2026 alone amount to around EUR 160 million.
The budget also provides for an increase in funds for municipalities in the amount of EUR 96.9 million, related to expenses incurred through own revenues and transitional balances.
An additional EUR 2.5 million will be directed to municipalities to compensate carriers that provide school transportation due to increased fuel prices. Another 8.1 million euros are earmarked for compensation to parents of children who have not been accepted into kindergartens and nurseries.
The draft budget also includes 30 million euros for Christmas supplements for pensioners, provided as a new social assistance under the Social Assistance Act.
With regard to defense, the Finance Minister announced that spending will be increased by 80.9 million euros. Among the reasons are Bulgaria's commitments to NATO to reach defense spending of 2.15% of gross domestic product, as well as the increase in fuel prices after the crisis in Iran.
In support of the agricultural sector, 170 million euros are planned for compensation due to higher fuel prices, and another 55 million euros will be provided as state aid for the transport sector in connection with increased costs after the introduction of the European directive on harmful emissions and the increase in toll fees.
„The previous two governments did not take action to increase the toll fee. A punitive procedure by the European Commission was pending. The only commitment was to provide state aid to carriers,“ said Donev.
The Finance Minister also presented the parameters of the capital program for 2026. According to him, capital expenditures increase by 2.487 billion euros compared to the 2025 budget. Of these, 1.856 billion euros are under European programs, and 631 million euros are funds from the national budget.
Particular emphasis was placed on investments for municipalities. A total of 2.13 billion euros are planned for them, which is an increase of over 1 billion euros compared to the current budget.
Donev noted that when comparing with previous versions of the budget, it should be borne in mind that in the estimates from December 2025, no funds were set aside for the municipal investment program at all. “There, the amount of funds was zero. "With this law, for the first time, 1.1 billion euros are realistically being invested," the Finance Minister said.
This amount includes almost fully paid funds under the budget extension law in the amount of 460.2 million euros, as well as an additional 600 million euros, which will be paid through the Ministry of Regional Development and Public Works by the end of the year.
Finance Minister Galab Donev stated that one of the main reasons for the accumulated financial problems is the underfunding of the municipal investment program over the last two years. According to him, in 2024 and 2025, the program was not financially secured, and payments under it were minimal, which led to an accumulation of completed but unpaid projects throughout the country.
Donev pointed out that a net reduction in capital expenditures by 381.8 million euros was achieved in the national budget at ministries and departments. According to him, this is due to the elimination of indexations under capital expenditure contracts, mainly in the Ministry of Regional Development and Public Works, the “Road Infrastructure“ Agency, the National Company “Railway Infrastructure“ and Bulgarian State Railways, as well as optimization measures in almost all state administrations.
The main increase in capital expenditures is planned for the “Defense“ sector, where an additional 158 million euros have been allocated. The total amount of planned capital expenditures of ministries and departments for 2026 is 2.015 billion euros, which is close to the levels of the previous year.
Under the central budget, the funds for capital expenditures have been reduced to 227.6 million euros, and will almost entirely be used to repay old debts accumulated in 2025.
The minister reported that capital expenditures with European funding total 5.332 billion euros. Of these, 3.329 billion euros are under the Recovery and Resilience Plan, and 1.426 billion euros - under the operational programs.
“If we do not absorb the funds under the Recovery and Resilience Plan on time, there is a risk that the projects will be completed at the expense of the state budget, and if the set goals are not met, European funds will have to be returned“, warned Donev. He called for the full mobilization of institutions to implement the projects by August 31.
According to him, a significant contribution to the growth of expenses is made by decisions of the “Zhelyazkov” and “Gyurov” cabinets, adopted during the validity of the budget extension law. The total amount of additional expenses approved at that time exceeds 1.1 billion euros.
Donev also commented on the increase in the expenses for the maintenance of the Council of Ministers, which increased by 8.5 million euros compared to the previous year. He specified that the majority of the amount - over 8.2 million euros - is related to the payment of amounts awarded by a decision of the Supreme Court of Cassation. Another 270 thousand euros are earmarked for the security and safety of the dismantled elements of the Monument to the Soviet Army in Sofia, and 12 thousand euros for the celebrations marking the 150th anniversary of the April Uprising in Vratsa.
„These are the so-called expenses of the Council of Ministers for coffee, cars and toilet paper. "58% growth," the Finance Minister commented ironically, responding to criticism on social media.
Regarding the upcoming protest by mothers, Donev said that the 2026 budget includes funds to expand the circle of those entitled under the Family Benefits for Children Act, as well as an increase in tax breaks for children and children with disabilities.
The Finance Minister also defended the changes in budget policy, emphasizing that the government is ending the practice of postponing expenses to subsequent years or concealing them through various financial mechanisms.
“We are showing the real picture in the country, without hiding anything“, said Donev.
As an example, he cited the municipal investment program, for which 1.1 billion euros are planned in 2026. According to him, by 2025, only about 50 million euros had been paid out under it, although significantly more projects had been implemented. “This is the model we are changing,” the finance minister emphasized.