“Democratic Bulgaria” insists that the draft budget for 2027 be revised so that the projected deficit is below 3% of gross domestic product. According to the coalition, this is necessary to limit the risks to economic growth and avoid the possibility of the country slipping into recession. The position was circulated by the press office of the political formation.
The reason for the reaction is the decision by international rating agency Standard & Poor’s Global Ratings to change the outlook on Bulgaria’s long-term credit rating from positive to stable. At the same time, the agency affirmed the country’s long- and short-term foreign- and local-currency ratings at BBB+/A-2.
The Ministry of Finance said that the change in the outlook was related to the deterioration of indicators in the budgetary and external sectors.
“Democratic Bulgaria” recalled that six months ago, S&P had improved the outlook on Bulgaria’s rating because of expectations that reforms would be carried out. According to the coalition, the current decision represents a step back from the progress achieved, as the government has submitted two unsatisfactory draft state budgets – for 2026 and 2027, while its promises of reform have not been fulfilled.
In its position, the political force also criticized the measures envisaged to limit the budget deficit in 2027. According to it, S&P considers some of them ineffective, specifically pointing to the one-off tax on excess profits, from which the state expects to raise €800 million.
DB emphasized that one-off revenues cannot be a reliable source for covering permanent expenditure. According to the coalition, the fiscal policy being pursued is already having a negative impact on the country’s creditworthiness and is creating the conditions for a risk of recession and a debt spiral in 2028.
The political formation pointed out that Prime Minister Rumen Radev’s cabinet has an independent parliamentary majority and the ability to undertake the necessary changes. Instead of shifting responsibility onto the opposition, the government should present concrete actions to curb inefficient spending, reform the state administration and the Ministry of Interior, as well as measures to encourage investment, production and exports, “Democratic Bulgaria” insists.