„Democratic Bulgaria“ has submitted a package of proposals for changes to the draft State Budget for 2026. The changes introduced between the first and second readings will be discussed today by the parliamentary committee on budget and finance.
The focus of the proposals is on limiting advance payments, cutting the unrealistic forecast for the amount of capital expenditures, reducing a number of public expenditures, as well as on a forecast for higher VAT revenues, higher gambling fees. The State Budget envisages more control and limitation of bonuses in the administration, regulators and the judiciary, as well as limiting the number of members in the management bodies of public enterprises.
With the envisaged additional revenues and reduction in expenses, a reduction in the size of the deficit is achieved. The lower budget deficit also allows for a reduction in the maximum allowable amount of state debt by the end of 2026.
The State Budget also maintains the activities of the Commission on Files, in view of its statutory functions of revealing affiliation and conducting checks on persons holding or applying for public positions.
The possibilities for financing road safety projects are also expanding, including measures aimed at increasing the technical condition of vehicles, through the use of a unified classifier and the information system for managing national investments.
Here is what the proposals include:
A more ambitious target for VAT revenues, given the Fiscal Council's forecast for higher GDP in 2026.
Increase in gambling taxes and increase in revenues by 200 million euro.
Reducing maintenance costs by 1.05 billion euros and optimizing subsidies for non-financial enterprises. Their overall increase is excessive and there is no breakdown of specific items and analysis to justify them.
Optimizing subsidies for non-financial enterprises by about 15%. For example, 36.425 million euros for the “Security of the Electricity System” fund can be saved because, according to the EWRC decision, revenues and expenditures are balanced.
Reducing national capital expenditures by 1.45 billion euros because there are no clearly defined projects, no financing rules and no budget time for the implementation of so many projects by the end of the year.
Limiting the advance spending of budget funds for sites that have not reached the necessary level of administrative and technical readiness. This reduces the risk of blocking public resources for projects whose actual implementation cannot legally begin.
A reasonable limit is introduced for additional remuneration for achieved results for members and heads of bodies elected in whole or in part by the National Assembly. The aim is to limit the possibility of paying excessive bonuses in bodies financed with public funds and to guarantee transparency, predictability and proportionality of remuneration.
An additional guarantee of control is introduced for the payment of additional remuneration to civil servants when their total amount exceeds 20 percent of the basic salaries for the relevant year. The preliminary decision of the Administrative Reform Council will create a unified approach and limit the unjustified and disproportionate spending of budget funds.
It is proposed not to link the basic remuneration of magistrates to the remuneration of members of parliament, as this creates a dependence on current political decisions and weakens the predictability of their status. At the same time, a clear limit is introduced for additional remuneration for achieved results of members of the Supreme Judicial Council and its Inspectorate.
State fees for maintaining licenses for organizing gambling are increased in view of the economic scale and social consequences of gambling activities. The higher fee level will ensure a fairer contribution of the organizers to public revenues and to the resources needed to regulate, control and limit social and health harms.
A clear and non-discriminatory legal framework is being created for the participation of traders in the sale of electronic vignettes and route cards. Official data verification will limit errors when purchasing vignettes, and public general terms and conditions, the register of suppliers and the limited amount of the service price will encourage competition and protect users of the toll road network.
Transparency and predictability are increased in the award of public contracts. The essential conditions, the non-fulfilment of which may lead to exclusion, should be specified in advance and explicitly in the documentation in order to limit the subjective application of the grounds for exclusion. The expansion of the circle of persons over whom control powers can be exercised strengthens accountability in joint awarding.
Maximum sizes of collective management and control bodies of public enterprises are introduced in order to limit costs and increase efficiency and personal responsibility in decision-making. In addition, a limit is established for additional remuneration for achieved results of members of management and control bodies.