Prime Minister Rumen Radev gathers the parliamentary group of "Progressive Bulgaria" and his ministers in Pamporovo to clarify Budget 2027, News.bg learned from its sources.
Earlier today Finance Minister Galab Donev announced that the government plans the budget for 2027 to have a deficit of up to 3%, which would allow Bulgaria to quickly return to the Maastricht criteria. He made his request during the conference "Building Resilience Together: Bulgaria's Membership in the ESM" in Sofia.
Among the measures envisaged are maintaining the growth of social spending and increasing pensions according to the rule in the Social Security Code. It is also planned to strengthen fiscal control, fight against the shadow economy and VAT fraud.
Taxes will not be increased, something on which the Ministry of Finance and the rest of the cabinet seem to disagree. The government promises to maintain the growth of social spending and pensions (according to the Social Security Code), but a more moderate increase in the minimum wage is envisaged (planned at 660 euros with a growth of 6.5% - a significantly lower rate compared to previous years).
The maximum amount of vouchers is raised to 200 euros, but a tax of 7% is introduced on them, as part of the measures to achieve a 3% deficit. A gradual increase in tax assessments is planned (by 30% for the first year and 35% for the next two), which will automatically increase revenues in local budgets from the "Buildings" tax.
It is planned to introduce a one-time solidarity tax on excess profits in sectors that are experiencing huge growth. Economists have already expressed concerns about some of the planned measures and the effect of their introduction. In principle, the government is considering raising maternity benefits in the second year, but achieving a balance between fiscal results and social measures requires serious compensating fiscal measures.
Surprisingly, the government is also commenting on serious tension between Prime Minister Radev and Finance Minister Galab Donev. Due to the problems surrounding the 2026 budget, relations between the two have become strained to the point that they do not speak to each other, except when absolutely necessary.
Donev did not want interference from Radev and completely trusted his team, while the prime minister wanted more visible results and not to give the opposition a reason to destroy the government's financial policy. What will happen to Donev will probably be decided after the decision of the Constitutional Court, which was appealed by the opposition for some texts from the 2026 Budget.
According to information from our media, Radev has an idea to move Galab Donev to the Ministry of Labor and Social Policy (MLSP).
We recall that Prime Minister Rumen Radev previously announced that in 2027 there will be a significant increase in the military budget. According to the Minister of Defense Dimitar Stoyanov, the planned spending for the sector will reach 2.33% of the country's gross domestic product. Spending in the social sphere will continue to grow, and pensions will be updated according to the "Swiss rule" set out in the Social Security Code.
According to the Prime Minister's request, the new financial framework will be structured in such a way as to cut off the access of oligarchic structures to the state's public financial resources. The 2027 budget will be realistic, will guarantee economic stability and will be submitted and adopted in full on time, according to the assurances of the authorities.
Source: news.bg