The 2026 budget was submitted for a vote in parliament with a record deficit for the last 20 years - 5.7% of GDP, or 7.2 billion euros.
"On the one hand, we see that the government, in its desire to show what its legacy is, is going for a 5.7% deficit, which is quite shocking and startling. We are already almost August, this 2026 budget will be implemented for 2-3 months. If this is the reason for all the "hidden invoices in the drawers" to be carried out through this budget and we see a radical reduction in the deficit by 2027, I will say that it is good and that was the strategy - not to leave "heavy stones" for the next budget. But in any case, we see that the government does not want to limit spending. The rulers never want to, presidential elections are coming, next year - local ones", said former Minister of Economy Nikola Stoyanov in the studio of "Denyat ON AIR".
The deficit and government spending
He still expressed the opinion that spending should be reduced.
"These are people who, up until 2-3 years ago, even in a better situation, did nothing about the issue. 2021, when Borisov's government fell, until then Bulgaria was very stable macroeconomically. If we are currently in such a situation, then the budgets in recent years have led to this. None of those who want something from the government today took any step towards reducing the administration. On the contrary, there were mechanisms that inflated the costs," Stoyanov added on the air of Bulgaria ON AIR.
The guest recalled that from "Progressive Bulgaria" they claim that they do not want to limit state spending, so as not to limit the growth of the economy.
"It will be difficult just to increase GDP and revenues. We also need to work on spending. I hope that in Budget 2027, more serious efforts will be made in this direction. If with this startling deficit of 5.7%, all these loopholes are closed and a chance is given to move towards 3.5% in 2027, let's say that I would accept it. Last year, the protests took place on the basis of the then proposed budget," the former minister emphasized.
The state of VMZ "Sopot"
Asked about the financial state of VMZ "Sopot", he replied: "The financial state is not what we want it to be. In 2021, it was much worse than it is now. Then, due to increased demand, the financial state had very strong years, 2024-2025 were record years for the last 30. However, demand is currently declining for a number of reasons. The main one is that the Bulgarian industry has not yet managed to make this technological leap and technological change."
According to him, it is also about management.
"I am optimistic because now there is a change and for several weeks Eng. Ivan Stoenchev has been the executive director. This news is being received positively because he is the most experienced. It always matters how the enterprise is managed. The state cannot just support enterprises like this. Technological transformation becomes difficult. Everyone keeps their technologies for themselves. In order for us to have NATO technologies, someone from NATO must transfer them to us, and this is not so easy. Currently, for the first time, Bulgaria is on the verge of spending a lot of money on defense - over 3 billion, and that is because of a European mechanism," Stoyanov explained.
"Rheinmetall" and the defense industry
"Rheinmetall" is another case, it was planned that money would be taken from SAFE. But SAFE does not finance the construction of production facilities. When then, as President Radev, he managed to bring "Rheinmetall" to Bulgaria, the talks at the beginning were neither about gunpowder nor about ammunition, but about completely different things. Then it changed that we would take the SAFE loan and invest it in a gunpowder factory," he added.
Prices of basic foods
"After so many years of missing things - prices, traders got used to doing whatever they wanted, huge problems with Bulgarian production, very difficult, even impossible to control now. For me, it is important to show some steps that they are trying. People are spending more difficult because they are more financially constrained. There is no one to pay these prices anymore. The foreigners I work with say that it is expensive. Bulgaria needs labor and this will also stimulate investments," Nikola Stoyanov is categorical.