The Council of Ministers approved the new draft budget for 2026, which relies on enhanced financial discipline and cutting inefficient state spending. Finance Minister Galab Donev reaffirmed the cabinet's categorical position that taxes will not be increased and the tax system will maintain its current levels.
According to the Ministry of Finance's estimates, the goal of reducing the budget deficit to 3.8% next year is fully achievable. However, official forecasts show that the budget deficit will fall below the 3% limit at the earliest in 2028..
This schedule coincides with the excessive deficit procedure imposed by the European Union finance ministers (ECOFIN) for Bulgaria, which requires gradual fiscal consolidation.
The Confederation of Bulgarian Trade Unions (CTU) jumped against the "freezing" of the minimum wage
The unions reacted sharply against the parameters in the macro-framework of Budget 2026. The Confederation of Independent Trade Unions in Bulgaria (CNTB) alarmed that the financial plan provides for freezing the statutory minimum wage indefinitely. The organization defined this decision as absolutely unacceptable, as it will directly affect every fifth worker in the country and will increase social inequality against the backdrop of economic challenges.
What measures is the government taking to control the deficit?
Finance Minister Galab Donev explained that the high levels of the deficit are a legacy of accumulated spending from previous administrations, including already made commitments of over 3.3 billion euros for 2026. The cabinet plans fiscal stabilization through several main levers:
- European funds: Maximum absorption of European funds as the only source for reducing the expenditure side without cutting key sectors.
- Administrative reforms: Increasing the efficiency of state administration and stopping the uncontrolled leakage of public resources.
- Social Security Contributions: Introduction of phased payment of personal social security contributions by civil servants and increase of the maximum social security income.
The draft budget is about to go through the final votes in the parliamentary committees and the plenary hall of the National Assembly