The draft budget for 2026, proposed by the authorities, relies on a philosophy of spending without sufficient fiscal discipline. This was stated by the former Minister of Economy and Social Affairs, Lydia Shuleva, in an interview for the program “Litsev lisev pozd bTV Novinite“.
In her words, the direction is “the more, the more“, but in a negative sense.
Shuleva emphasized that the 2026 budget envisages expenditures in the amount of 45.8% of the Gross Domestic Product (GDP), given that the Public Finance Act sets a maximum threshold of 40%.
“For years, we kept expenditures between 37% and 38%, a maximum of 40%. We are now at levels of 45%, which is a dangerous precedent“, she specified.
The former Minister of Economy warned that this policy would lead to an increase in taxes and social security contributions, as well as an increase in state debt.
According to her, new loans for 20.5 billion leva (about 10.5 billion euros) are planned for 2026, which will triple the interest costs on debt servicing.
According to Shuleva, the unjustified increase in salaries in the state sector, which exceeds the real levels of inflation, is also a serious problem. “With inflation of 3.5%, we have salary increases of 12, 15, even 50% in some sectors. There is no connection between efficiency and remuneration,“ she commented.
Shuleva expressed concern that leaving the currency board and entering the eurozone could lead to “untying the hands“ of the rulers in terms of spending.
“While we were in the currency board, fiscal stability was sacred. Now we hear in parliament that this is no longer so important“, she said.
Lydia Shuleva warned that if spending continues to grow and is financed through debt, Bulgaria could follow the Romanian scenario – with high debts and the need for heavy economic measures.
“The bill is always paid by the man on the street, not by those who vote on the laws,“ she added.