The 2026 budget is a budget of reality, Deputy Prime Minister and Minister of Finance Galab Donev told the Bulgarian National Radio. He emphasized that the deficit of 5.7% of GDP is the result of the management of many governments.
"It is also an expression of the fact that financial discipline during these years was not at a good enough level. All kinds of accounting tricks were allowed, just to keep the budget deficit within 3% - a goal that we have seen that since 2024 has already been missed, despite the accounting equilibrists applied. This deficit is a consequence of the entire unreasonable policy that has been pursued over the past 5-6 years," Donev said.
We have taken responsibility to show the real picture in the country, the Finance Minister pointed out.
"The budget could have been within 3% and below 3% deficit if 3.3 billion euros had not been made in commitments for spending for 2026, if the previous year's bank profits had not been taken as income in advance, if an interim dividend had not been collected from state-owned enterprises, which was also seized in advance in 2025," he explained and calculated that if all these things had not been done, the deficit would have been within 2.3%.
In his words, the only possible source for reducing the expenditure side and shrinking the deficit are European funds: "We are doing everything possible - and the Council of Ministers, the National Assembly, and the individual ministries, to deal with the commitments made, but they were delayed far back in time - for 3 years nothing was done about them. Now we have activated this process and I hope that what we will lose as European funds under the plan will be minimal. We are doing everything possible to absorb over 99%".
According to him, however, it is an achievable goal for the deficit to be reduced to 3.8% next year, and for it to be below 3% in 2028.
Donev was categorical that taxes will not be increased: "We will not touch taxes, taxes will remain as they are. We will work to first have financial discipline, to plug all the holes from where public resources are leaking, to make the state administration more effective and efficient, to receive better and higher-quality services, to increase the quality of life of Bulgarian citizens, to make business function without additional state intervention and state obstacles. All this will lead to a better, normal environment for business and life in Bulgaria".
I started saying "no" very quickly when I saw what the real picture in finances was, said Galab Donev. He declared that he is keeping the taps of the financial system tightly closed so that public resources do not leak out uncontrollably, and the money goes where it is really needed.
"When you throw money at everyone, it goes to everyone, but it does not go where it is needed most", he pointed out.
The Deputy Prime Minister is categorical that in the negotiations between "Bulgargaz" and the Turkish company "Botaş" Bulgaria will not offer anything in return: "Bulgaria will not put anything on the table in these negotiations. These are negotiations between two commercial companies - between "Bulgargaz" and "Botaş". Bulgaria has not paid any of these funds of these 360 million so far. It did not happen as such a project, which is why this agreement to freeze payments was reached. It is only paid when we have an actual delivery of gas through the infrastructure of "Botaş". During the rest of the time, the two companies must agree on how to change the contract so that in the current conditions it is beneficial for both countries.