The National Council for Tripartite Cooperation is discussing the draft 2027 Budget. The financial framework has been prepared with a deficit of 3.5% of gross domestic product, or €4.9 billion. The draft has been published for public discussion and has already faced criticism from employers' organisations and trade unions.
The framework envisages the state taking on €8.6 billion in new debt next year. Thus, the total amount of liabilities at the end of 2027 is expected to reach €44.4 billion, or more than 31% of GDP.
The Finance Ministry's forecast projects average annual inflation of 4%, while economic growth is expected to slow to 2.5%. The ministry presents the reduction in the deficit as part of efforts to consolidate public finances.
Criticism of the financial framework
The social partners are discussing the budget parameters after both business organisations and trade unions expressed disagreement with certain elements of the proposal. The information submitted does not specify the two sides' demands.
The draft budget was presented at the University of National and World Economy by Prime Minister Rumen Radev. During its presentation, he used a vivid description of the state of public finances:
„What is the 2027 Budget? I will answer you very simply - it is a heavy truck with failed brakes, racing downhill towards a precipice, and we have to stop it and bring it back up the slope. That is the task before us. To change the direction, to change this trajectory that is leading us towards the precipice.“Following the discussion at the Tripartite Council, the draft must continue through the statutory procedure for adopting the 2027 state budget.
Sources: bnrnews.bg, minfin.bg, bta.bg