At its meeting today, the Council of Ministers adopted the package of draft budget laws for 2026, after which they will be sent for final approval to the National Assembly.
The macro framework, prepared by Finance Minister Galab Donev, sets budget deficit of 5.7%. This will force the download of new state debt in the amount of 2.2 billion euros to cover it.
Main parameters and measures in the draft budget:
- Salaries and Administration: A 10% cut in salary costs in the budget sector is planned from September 1. A ceiling on remuneration for directors and boards of state-owned companies is also introduced.
- Taxes and fees: From August 1, vignette prices will increase by 30%, and the gambling tax will be fixed at 10%.
- Insurance: The minimum insurance thresholds by profession and the maximum insurance income are being increased. Civil servants will start paying 20% personal insurance contributions, and their income will be compensated.
- Pensions: Occupational and social pensions are indexed according to the Swiss rule at 7.8%. The remaining social benefits and the pension ceiling remain frozen. The Covid supplement is no longer applicable to new pensions.
Political and public reactions
The project did not receive the support of business and unions during discussions in the National Council for Tripartite Cooperation. The opposition in parliament also sharply criticized the parameters, defining them as “excessive spending“.
Prime Minister Rumen Radev defended the budget plan, calling it a “budget of reality“ and added that the government's goal is to reduce the deficit to 3% by 2028.
Source: Bulgarian National Radio