The Ministry of Finance is preparing a budget for the next year 2027 with a projected deficit of 3.5 percent of the gross domestic product on a cash basis and 4.3 percent on an accrual basis, and in addition, layoffs and a freeze on income are planned for the "Security" sector. This became known from the words of the President of the Confederation of Bulgarian Trade Unions Plamen Dimitrov after today's meeting with the Minister of Finance Galab Donev in the ministry building in Sofia, BTA reports.
According to Dimitrov, the projected deficit of 3.5 percent represents “a very steep fiscal consolidation, this means that expenses will be cut somewhere“.
Dimitrov said that the projected increase in salaries in the budget sector of 5 percent in 2027 will not apply to the “Security“ sector, where no increase in remuneration is envisaged. In addition, in the “Security“ sector layoffs are planned, similar to the plans for layoffs in the rest of the administration, Dimitrov said, describing these intentions as fair.
He pointed out that they have proposed that salaries in the public sector increase by 10 percent, instead of the planned increase of 5 percent. Regarding the minimum wage, the president of the Confederation of Bulgarian Trade Unions (CITUB) indicated that so far there has been no result in the direction of increasing the planned 660 euros, but there is a request that this may not be the final amount of the minimum wage.
Dimitrov said that they have expressed doubts about the macro framework, as they believe that the projected amount of GDP is underestimated, respectively, the expected tax revenues.
According to him, in order to fulfill the demands of the Confederation of Bulgarian Trade Unions (CITUB) on income policy, another 380 million euros will be needed, which can be provided, since budget revenues will be higher than what is forecast by the Ministry of Finance for 2027.
“Overly conservative planning at the moment creates the illusion that we do not have a solution, that it is not possible“, he said.
Dimitrov expressed moderate optimism that if The government listens to the people, they can find the necessary funds to pursue a fairer income policy, especially for the benefit of citizens with the lowest salaries.
„People who receive 700 euros, 650 euros, with two higher educations, with two languages in libraries, museums, etc. cannot be left with these 5 percent, which are 25 euros in their pockets, this is a mockery“, added Dimitrov.
The government's planned 7 percent taxation of food vouchers should be a social security contribution, not a tax, and the promised 5 percent increase in salaries in the budget sphere should apply only to the first half of 2027. These proposals have also been made by the CT „Podkrepa“ during today's meeting between the unions and the Minister of Finance, it became clear from the words of the president of the trade union organization Dimitar Manolov.
According to Manolov, the result of the meeting is “for the workers and employees, nothing, but from the heart“.
He explained that the union proposes that the planned increase of 5 percent in salaries in the public sector be valid for the first 6 months of next year, after which to analyze whether there is a possibility of an additional increase in the second half of the year.
Manolov stated that if it is so imperative to tax food vouchers, it would be more useful for this not to be a tax, but a social security contribution.
“This will reduce the transfer to the state social security on the one hand, but on the other hand, this will enter the social security income of the individuals, which we find useful. It seemed to me that they agreed, I hope I was not mistaken“, said Manolov.
Asked if he thought that the revenues pledged in the macro framework were underestimated, he answered positively.
“Of course, the revenues in the macro framework are always underestimated, a political manner that is irresistible in Bulgaria. No finance minister will admit where his buffers are, because in the end how will he emerge as a hero, this is an insurmountable political tactic, as we talked about that terrible deficit, which is now coming out somehow different and the credit for that goes to the politicians, there is no such thing“, he said.
Later today, a meeting is scheduled between the finance minister and representatives of the employer organizations.
Today, the Confederation of Bulgarian Trade Unions and its main members are organizing a national protest and a motorcade in Sofia under the slogan "For higher incomes!". They will insist that at least a 10 percent increase in incomes be provided for in the 2027 budget.