The opposition strongly criticized the draft budget for 2027, presented at the University of National and World Economy. The main criticisms concern the expected 4% inflation, the new government debt, tax changes and the lack of policies to curb the rising prices of energy resources, fuel and goods. BNT reported that representatives of the opposition parties described the projected parameters as a threat of recession and a lasting decline in purchasing power.
Criticism over inflation and new debt
Temenuzhka Petkova of GERB-SDS said that the budget would not solve the accumulated problems and could lead to another surge in inflation. She identified as controversial the proposals for €8.6 billion in new debt, an increase in the maximum insurable income, the introduction of a windfall profits tax and changes to the taxation of food vouchers.
“This budget is neither reasonable nor will it solve some of the problems of Bulgarian society,” Petkova said.
Ayten Sabri of the Movement for Rights and Freedoms described the financial framework as a “social mirage” and said that purchasing power was declining. In her words, the draft contains no anti-inflation measures or sufficient economic policies for businesses, which, she said, was leading to progressive impoverishment.
Dispute over growth and investment
Ivaylo Mirchev of “Democratic Bulgaria” focused on the expected decline in gross domestic product growth. He said that instead of the promised industrial development, a budget had been presented with nearly €9 billion in new debt, which he described as a “budget of a terrifying collapse”.
Nikolay Denkov of “We Continue the Change” warned that incomes could grow more slowly than inflation. He also pointed to a reduction in the capital investment program from €10 billion to €6 billion. According to Denkov, if the parameters are not changed, the country could fall into recession within a few months.
Tsontcho Ganev of “Revival” said that the draft offered no solution to inflation and rising prices, but provided for new loans and higher taxes. He said that the party would not support the budget.
Talks with the social partners ahead
The draft budget must be discussed with trade unions and employers’ organizations before being submitted for consideration by the National Assembly. According to the schedule presented, the talks are to take place next week, while by Friday the draft is to be adopted by the Council of Ministers and submitted to parliament.
Sources: bntnews.bg