The drafts for the state budget, the budget of the State Social Insurance (SSI) and that of the National Health Insurance Fund (NHIF) for 2026 are entering the plenary hall of the National Assembly for discussion.
This is happening after the financial documents received the approval of the relevant Committee on Budget and Finance after a marathon 10-hour meeting, and were subsequently reviewed by the other parliamentary committees.
The ambition of the ruling majority is for the three laws to be finally voted on and adopted in two readings by the end of July.
Main macroeconomic parameters
The draft Budget 2026 submitted by the Council of Ministers is based on a forecast for economic growth of 2.7% and average annual inflation of 3.5 percent. The country's gross domestic product (GDP) is expected to exceed 120 billion euros.
However, the most debated and criticized the set record deficit of 5.7% of GDP, which significantly exceeds the traditional ceiling of 3% for the euro area. The financial framework envisages the total amount of government debt to reach over 37 billion euros, with a limit for taking on new debt of up to 10.5 billion euros.
Social measures and incomes
The macro framework includes changes in key social and insurance parameters:
- Minimum wage: The project provides for an increase to 620.20 euros.
- Maximum insurance income: The threshold is raised to 2300 euros.
- Minimum social security income: Its levels are aligned with those of the minimum wage.
Social Minister Natalia Efremova explained that this budget largely "repairs" and legalizes the existing situation in public finances, as it is adopted in the middle of the current year. According to the manager of the National Social Security Institute, Vessela Karaivanova-Nacheva, the lion's share of the expenses in the social security fund goes to pensions - nearly 1.79 billion euros. At the same time, the Ministry of Justice hastened to refute the speculation, assuring that no reduction in the salaries of magistrates and court employees is planned in the state sector.
Criticism from the opposition and business
The unions and employers' organizations accepted the government's financial plans in the National Council for Tripartite Cooperation (NCTC) with serious reservations. The business sector sharply criticized the increase in social security thresholds, arguing that this would burden highly qualified personnel and stimulate the shadow economy.
In the parliamentary committees, the opposition has spoken out against the financial framework due to the lack of structural reforms, the freezing of part of maternity and unemployment benefits in the medium-term forecast, as well as the serious growth of the state debt. Experts from the Fiscal Council also reminded that a huge part of pension costs continues to be covered directly from the state budget, instead of from social security contributions, which requires a long-term reform strategy.
It remains to be seen what adjustments will be made to the texts between the first and second readings in the plenary hall, where heated political debates are expected.