The 2026 budget is realistic. It is like that because of the bad legacy, Finance Minister Galab Donev told bTV.
The number one financier defended the budget for this year and explained that the increases set in it will not harm people significantly. And he gave an example with vignettes: “This increase sounds startling, but if you do the math, it's 1.20 euros per month for the annual vignette.“
The increase in the maximum social security income to 2,300 euros will not harm high-wage workers, believes Galab Donev, because they will receive more rights:
“This increase is not so startling for people who are close to retirement age, they will quickly feel the difference, because they will feel a higher pension“, he also said.
And the finance minister explained the hole in the budget for this year with the bad legacy and unpaid debts from the previous government:
“All the numbers, what was hidden over the years, that's why he looks this way and he must open the door to normality in the country. It can only be corrected with measures on the revenue side or measures limiting the expenditure side, but the measures applied on the expenditure side should not be abrupt and lead to shock changes in income“, said the Finance Minister.
The Finance Minister pointed out that despite the measures taken, the government has managed to reduce the projected deficit from 7.4% to 5.7% of GDP.
“The most vocal are those whose policies led to this deficit, and now they speak out against it the most“, he added.
According to Donev, the current budget is burdened with already incurred expenses under the extended budget, as well as with completed municipal projects for which no financing has been provided so far.
“We cannot not pay them off. These are completed projects, but before each payment there will be an inspection“, assured the Finance Minister.
Inspections before each payment
According to him, the state will not pay out funds automatically.
“Everything is paid after an inspection. Nothing will be paid just like that. Where there are doubts, the State Financial Inspection Agency will intervene, as well as the construction control“, said Donev.
He also gave an example of the public procurement for guardrails for nearly 490 million euros, which, according to him, has been suspended.
“We do not pay for procurements that contain a corruption risk“, the Minister of Finance was categorical.
Why will civil servants receive compensation?
One of the most commented measures is for civil servants to gradually start paying their personal insurance contributions themselves.
According to Donev, this will happen without reducing their net salaries.
“When the state took over their personal insurance contributions years ago, their salaries were reduced. Now we are restoring justice – "we are increasing salaries by the amount of the personal insurance contribution that they will start paying," he explained.
According to him, the real budgetary effect of the reform will be felt in 2028.
Administrative reform is coming
Donev admitted that there will be no cuts in the administration this year, but assured that they are part of the government's program.
„We must first conduct a thorough functional analysis. The administrative reform will be reflected in the budget for 2027“, he said.
Salaries in state-owned companies
The Finance Minister also announced that changes are coming to the rules for the remuneration of directors of state-owned enterprises and hospitals.
„There will be clear rules and ceilings. Bonuses will also be limited, so that there are no such striking discrepancies in pay“, said Donev.
Are changes in the budget possible?
According to the minister, the government remains open to talks with social partners, but will not make abrupt changes.
“It is not about concessions, but about dialogue and finding better solutions where possible“, he emphasized.
According to Donev, the main goal remains the gradual reduction of the deficit without shock measures.
“We should not suffocate the economy. On the contrary - we should give it the opportunity to grow, because it is through growth that we can sustainably reduce the deficit“, said the finance minister.