The budget of the Sofia Municipality for 2026 is over 1.543 billion euros - 5% more than the previous year. Today, the financial framework of the capital was adopted by a majority of the municipal council.
„The 2026 budget is a record, but the funds remain limited. The big question is what we choose to do with them“, said Mayor Vasil Terziev. „It has always been key for us to be clear about what the funds are going for and that they solve important problems for the city. That is why we have prioritized education, public transport, infrastructure, the environment in the neighborhoods and the development of the green system“, said the mayor of Sofia.
The mayor of Sofia commented that the budget for 2026 is record-breaking, but the funds remain limited compared to everything that the municipality wants to do for the city. “We may have differences on which projects to include, but I believe that we can unite around one thing: it is difficult for Sofia to achieve what Vienna, Copenhagen or Oslo have achieved, when their budgets per capita are 10-12 times higher“, said Terziev.
“We are proposing the largest budget in the history of Sofia, without increasing local taxes and fees for citizens and businesses. We are increasing our own revenues by 10% through better collection and directing more funds to real investments in the city“, said Deputy Mayor for Finance Georgi Klisurski.
Over 90% of the projects in the capital program are in an advanced process of implementation
An increase in the capital program has been achieved. It amounts to 305 million euros, which is about 25 million euros, informed Deputy Mayor for Finance Georgi Klisurski. The increase is due to better collection and planning of more investments for important projects for Sofia.
The implementation of the capital program is progressing. According to the mayor, over 90% of the projects in it are almost completed or are in an advanced process of implementation. “We have made clear progress in implementing what we have set out“, he pointed out.
Terziev highlighted as important tasks the accountability in spending funds and the effectiveness of each project. According to him, the municipality is also looking for additional opportunities to make more investments for the city, including through public-private partnerships and the protection of an investment loan. “Both small and large projects for the urban environment matter when the positive change is felt in every neighborhood“, the mayor said.
The implementation of more large, landmark projects requires preparation and a clear path for their financing, Terziev also pointed out. He called on the disputes on individual topics not to displace the common task: what can be done for Sofia.
The mayor of Sofia also stated that work on the 2027 budget is ahead. The municipality has undertaken to familiarize all municipal councilors with the proposed framework, the main policies and projects as early as possible. Terziev recalled that last year the framework was presented back in December.
When presenting the draft budget for this year, the municipality pointed to the higher revenue collection as an opportunity to direct more funds to key projects. Increasing its own revenues remains a consistent priority so that Sofia can finance projects important to the people and its long-term development.
The municipality's own revenues in the budget are nearly 615 million euros - 10% more than those set for 2025. The growth is twice as high as inflation in the country and is expected to be achieved through better collection and natural expansion of the tax base. The financial framework includes another 738 million euros for state-delegated activities, over 60 million euros in European funds and 73 million euros in loan funds.
The funds from the EU and international programs are over 60 million euros. They will finance projects under the National Recovery and Sustainability Plan related to the metro and the construction of kindergartens and schools.
Education, Transport and Urban Environment
21.8 million euros are planned for the construction and expansion of kindergartens, as well as for major repairs. 15.9 million euros will be invested for new school buildings, sports halls and major repairs.
Three capital projects are being financed with a targeted subsidy from the state budget: the rehabilitation of the tram track and roadways along 1.2 km of Blvd. „Maria Luiza“ between Blvd. „Opalchenska“ and Blvd. „Kozloduy“ - 5.5 million euros; the construction of Blvd. „Copenhagen“ - 6.8 million euros; and the major renovation of “Tintyava“ Street, which is expected to begin.
After the commissioning of three new metro stations this month, the expansion of the metro through “Slatina“ by 6 km continues, as well as in “Obelya“. 50 million euros have been provided for the construction of the metro by the European Investment Bank, the state and the municipality. Among the transport priorities are also the renewal of the rolling stock with trolleybuses and electric buses, key boulevards, new sidewalks and bicycle connections.
The budget includes 155 thousand euros for the “Green Ring“ - one of the strategic projects for the development of Sofia. The development of a technical project for two sections of the largest linear park in Sofia, those in “Iztok” from “Gara Pioner“ to Blvd. “Shipchenski prohod“ and “Slatina”. Competitions are also planned for a linear park along the Vladayska River, for a new park “Kukuryak“ in the “Ovcha Kupel“ area and for the renovation of the Prince's Garden.
Additional sources of investment
The budget remains insufficient to overcome the infrastructure deficits accumulated over decades. Therefore, the municipality is looking for additional opportunities through European programs, public-private partnerships and long-term loan financing.
Sofia has launched one of the largest investment programs in its history. The funds are intended for new public transport vehicles, missing road connections, reconstruction of key streets and boulevards, transport hubs, rail and accessible pedestrian infrastructure. The loans will not cover current expenses. They will be long-term, unsecured and will be repaid from the municipality's future revenues. The Sofia Municipality has also secured 265 million euros in European funding for transport projects and metro development.