There were serious discussions in KRIB about whether to support Budget 2026 in the National Council for Tripartite Cooperation (NCTC). On the one hand, this annual budget has already been largely implemented and the government is faced with a fait accompli for the first 7 months of the year.
This was noted by KRIB Chairman Kiril Domuschiev.
On the other hand, almost all reforms to reduce spending have been postponed to 2027, and the ruling party has a majority and can act much faster and bolder. However, removing the automatics and paying social security contributions by everyone are steps in the right direction.
Therefore, the KRIB will put the following points at today's meeting of the National Social Security Council as a basis for obtaining our support for Budget 2026:
1. Do not index the salaries in the budget sector of employees who are above the maximum social security income, because they will start paying their social security contributions. Only the salaries below the maximum ceiling should be indexed, and for employees with a net salary below 1,000 euros - it should be indexed by an additional 3%.
Obviously, our colleagues from the unions have not done their job in the public sector dominated by them and have allowed directors with higher salaries than Donald Trump's to manage employees with salaries close to the minimum wage. Indexing all salaries of the kalpak during a budget crisis will be a signal that the winter protests against inequality have not been heard.
2. The Prime Minister and the Minister of Finance should require each ministry to present three permit regimes per year, which should pass by tacit consent. For each regime not presented, the Minister of Finance should cut 10% of the maintenance of the relevant department.
3. To compile a list of at least two large objects for concession or privatization in the next year. The government shows shocking director salaries of companies mired in debt and losses every week. Some, like Toplofikatsia Sofia, are already threatening the sustainability of entire systems. When a private business loses money, it goes bankrupt - and when a state-owned one loses money, they give it even more money. It is time for this absurdity to end!!!
4. All automatics should be removed by legislative changes within 2026. Collective labor agreements with automatics in the budget sector should not be allowed, since the funds come from taxpayers who are not parties to such contracts.
5. To accelerate the compilation of the government's management program, and all measures that are not included in the election program should be presented in advance to the social partners by the economic or financial deputy prime minister. The medium-term fiscal framework should be based on the management program in order to inspire trust and stability.
6. To draw up a plan for reducing the number of employees in the public sector to 2/3 of the OECD average in 2028. Bulgaria is a country with 35 years of modern market economy in its history and in a demographic crisis – It is not normal to move towards a situation where, in a future Bulgaria of 5 million people, every 2 workers in the private sector will support 1 civil servant, 3 pensioners and 1 unemployed person. The math does not work out.
At KRIB, we continue to be concerned about the high levels of inflation, since any budget deficit in the conditions of full employment in the economy will increase inflation even more, no matter what the current situation is in fuel, food or services. Inflation can be reduced below 2% only and only by implementing a budget with a surplus, and we believe that such a budget should be drawn up no later than 2028.
Let's hope that our proposals will be heard and accepted.