After marathon and heated debates that lasted until late in the evening, MPs adopted on second reading the main parameters of the state budget for 2026.
The macroeconomic framework proposed by the government of “Progressive Bulgaria“ provides for budget deficit of 5.7% of GDP (about €7.3 billion), projected economic growth of 2.6% and average annual inflation of 4.3%.
Finance Minister Galab Donev called from the podium for “realistic attitudes and expectations“, defining the new budget plan as the first important step towards stability and fiscal balance. According to official estimates total revenues amount to 49.6 billion euros, while expenses will reach a record 56.8 billion euros. To cover the deficit and old debts, an option has been set for taking on new government debt of up to 10.1 billion euros.
The big changes: Hours of work experience and a new mechanism for the minimum wage
The most serious political clashes in the plenary hall were caused by the reforms in the social sphere, carried out through the transitional provisions of the law. The amendments completely change the labor market in Bulgaria:
New methodology for length of service: It will now be calculated based on hours worked, and not on calendar days. The ruling majority argued the measure by cutting off vicious practices among people who were fictitiously led to a 4-hour workday and brightening up the economy. The opposition, represented by the PP and DB, criticized the decision on the grounds that it would seriously hit part-time workers, young parents and students. Freezing the minimum wage: The previous mechanism for automatically increasing the minimum wage is abolished. A new indexation model will still be negotiated between unions and employers for Budget 2027. Salary ceilings: The majority abandoned the idea of imposing a limit on the remuneration of managers in state-owned enterprises. However, a ceiling was introduced for the Chairman of the Financial Supervision Commission (FSC) in the amount of 95% of the President's salary.Sharp criticism from the opposition and adopted budgets for health and pensions
During the debates, DB MP Martin Dimitrov sounded the alarm that the high deficit of nearly 6% and the huge new debt are leading the country to a serious budget crisis and burdening future generations. From “We continue the change“ also declared that the financial framework is “a blow to the working people“.
Despite the resistance, within the same session the National Assembly managed to finally adopt the budgets of National Health Insurance Fund (NHOK) and State Social Security (SSS), which also approved the higher insurance thresholds, effective from August 2026. The new budget also reduces the state subsidy for religious denominations from 20 leva to 7.7 euros per capita.