The government is presenting the state’s draft budget for 2027 at the University of National and World Economy. This is the first presentation of the financial framework at UNWE, and the entire cabinet, including Prime Minister Rumen Radev, is expected to attend the event.
According to preliminary data, the budget is once again expected to have a deficit of more than 3%. Revenues and expenditures are projected to exceed €50 billion. The planned ceiling on government debt is expected to surpass €39 billion, while new borrowing is set to exceed €12 billion.
Higher minimum wage and pensions
The minimum wage is expected to rise to €660 as of 1 January 2027. An increase in pensions is planned for July under the Swiss rule.
More payments for families are expected in the social component of the budget. An additional tax relief of up to €2,000 is planned for parents of one child, up to €4,000 for two children and up to €6,000 for three or more children. The benefit for the second year of maternity leave is expected to be around €450 per month.
Revenue from new tax measures
The draft budget envisages additional revenue from a windfall profits tax in six sectors: banks, payday loan companies, retail chains with more than five outlets, insurers, telecommunications companies and currency exchange offices. Additional regulations in the gambling sector are also planned.
Before the presentation of the financial framework, Prime Minister Rumen Radev said: “We are planning for higher revenues without changing the main taxes, incomes, profits or VAT.” The government identifies social support and curbing expenditure as part of its budget priorities.
Each minister is expected to present the budget of their respective ministry. Deputy Prime Minister and Finance Minister Galab Donev will present the overall financial framework. The full parameters of the draft budget are expected to become clear during the presentation at UNWE.
Sources: bntnews.bg