The Parliament voted on the first reading of the amendments to the Law on the Collection of Revenues and the Execution of Expenditures in 2026, as well as on the National Health Insurance Fund and the State Social Security, until the Law on the State Budget for next year is adopted, a FOCUS reporter reported.
The bill provides for an increase in the ceiling for new state debt to 3.8 billion euros in 2026, in order to finance the budget deficit and secure upcoming payments under already concluded contracts under the Recovery and Sustainability Plan (RSP). After the vote, the deadline for proposals between the first and second readings was shortened to 5 days at the suggestion of the chairman of the budget committee, Konstantin Prodanov (PB).
The proposal, submitted by the Council of Ministers and adopted at first reading, received the support of 135 deputies - 119 from "Progressive Bulgaria" and 16 from MRF-NN. DB and "Vazrazhdane" voted against, while GERB and PP abstained.
Finance Minister Galab Donev received permission for new debt at the second attempt. The first attempt, two weeks ago, was withdrawn after all groups stated that they would not support it, and Assen Vassilev from PP threatened to request an annulment from the Constitutional Court. Then the proposal was withdrawn by Konstantin Prodanov.
"This will provide a resource with which the national budget will be able to pre-finance the expected significant payments in 2026 under the National Recovery and Resilience Plan and minimize potential liquidity risks," Donev told the deputies.
"In the conditions of a state budget law not adopted by the beginning of the fiscal year, similar provisions related to the collection of revenues, the implementation of expenditures and the provision of transfers were in force in previous years. In contrast, in 2026, an explicit provision must be included in the so-called. an extension law, which will regulate the possibility of assuming state debt in connection with providing resources for financing the current budget deficit and pre-financing payments for the implementation of national activities and investments, the final stage of the implementation of projects under the NLF, the Minister also said.
He added that the deadline for the implementation of activities and investments financed under the recovery and resilience mechanism is August 31 this year.
The project provides for the issuance of new debt on international capital markets and short-term state debt of up to EUR 3.8 billion by the end of the budget year. The Council of Ministers will also have a mandate to negotiate a loan of EUR 3.2617 billion under the Security Instrument for Europe (SAFE).