The Sofia Municipal Council (SMC) adopted the budget of Sofia for 2026 and the economic framework of public urban transport. The financial framework is over 1.54 billion euros, with the project providing for 300.3 million euros for capital expenditures, with an emphasis on transport, road infrastructure, education and the urban environment, BTA reports.
Sofia Mayor Vasil Terziev described the adoption of the budget to journalists as delayed due to the later adoption of the state budget. According to him, the 2026 budget practically covers about three quarters of the year.
The real work on the budget is ahead with the preparation of the financial framework for 2027, said Terziev. He pointed out that the municipality is committed to familiarizing the municipal councilors as early as possible with the framework, the main policies and the projects that will be proposed for next year.
The mayor noted that a large part of the planned capital expenditures are already in an advanced stage of implementation. Among the main priorities, he mentioned education, public transport, infrastructure, the environment in the neighborhoods and the development of the green system.
According to him, no matter how record-breaking a budget is, the funds remain limited compared to the needs of Sofia. Therefore, it is necessary to seek efficiency in each project, as well as additional financing opportunities, including through public-private partnerships.
Terziev emphasized the need to prepare a long-term capital framework in the coming months, which clearly shows which projects are priorities and how they can be financed. According to him, a similar approach should also be taken in urban transport, including a long-term plan for its development, investments in vehicles and garages, personnel and revenues.
The mayor also commented on the economic framework of urban transport, indicating that a significant deficit is foreseen for 2026, which, according to him, is expected against the background of wage increases in recent years. He stated that the business plans of the transport companies and the possibilities for their more effective management should be discussed.
Deputy Mayor for Finance Georgi Klisurski told journalists that the basis of the tax assessments for 2027 is an increase of up to 33%, and in 2028 and 2029 - up to 35%. According to him, this is a policy that will have an impact on both citizens and the revenues of the Sofia Municipality.
In 2027, the municipality expects about 25 million euros more in its own revenues as a result of the changes, Klisurski said. He specified that this means that citizens should expect higher taxes on real estate transactions - for purchases, sales and donations, since the amount of local tax in these transactions is related to the tax assessment.
Klisurski noted that a completely accurate forecast for revenues cannot be made, since they will depend on the real estate market and on the number of transactions that will be carried out and at what value.
According to him, in the first half of the year the real estate market was moving at a high pace, but in July and August a certain slowdown was already observed. Klisurski emphasized that the development of the market cannot be controlled or accurately predicted by the municipality.
The additional revenues that will be received in the municipal budget will be directed to the needs of the city, including kindergartens, schools, transport, the urban environment and the green system, said the deputy mayor.
He pointed out that the budget of the Sofia Municipality is balanced. Unlike the state, the municipality cannot plan a deficit, which is why revenues and expenses must be balanced, explained the deputy mayor.
Klisurski noted that even in this budget there is a shortage of funds compared to the needs of individual areas. According to him, district mayors, deputy mayors and municipal councilors can indicate different needs, but the task is for the funds to be distributed based on clear principles and policies.
Terziev said that despite the record size of the budget, the level of indebtedness of the municipality remains low - below the legally regulated threshold of 15%. According to him, this makes it possible to provide additional financing for large infrastructure projects during the next term.
The mayor also pointed out that the Sofia Municipality's own revenues are increasing by about 65 million euros this year. According to him, this creates additional opportunities for bolder planning of large projects.
Terziev noted that due to the restrictions related to the election period, the municipality will not be able to take on new debt commitments in a certain period before the elections. According to him, therefore, by then the maximum number of projects must be prepared and an agreement reached on which of them are priorities.
According to him, the increase in own revenues will make it possible to discuss taking on new debt for the implementation of large projects again in 2028. He pointed out that the loan taken will be more significantly reflected in the 2027 budget, giving a multi-year start to key projects for the city.