The government is presenting the draft budget for 2027 at the University of National and World Economy. This is the first time that the parameters of the state budget have been presented at the university, and the entire cabinet, including Prime Minister Rumen Radev, is expected to attend the event. The financial framework is being presented by Deputy Prime Minister and Finance Minister Galab Donev.
According to preliminary data, the budget will once again have an excessive deficit of more than 3%. Revenues and expenditures are expected to exceed €50 billion, while the ceiling on government debt is expected to surpass €39 billion. More funds are planned for defence and social payments.
Higher incomes and relief for parents
The minimum wage is expected to reach €660 from 1 January. An increase in pensions under the Swiss rule is planned from 1 July.
The draft includes an additional tax relief for parents. It is expected to amount to up to €2,000 for one child, €4,000 for two children, and €6,000 for three or more children. The benefit for the second year of maternity leave is expected to reach around €450 per month.
Windfall tax in six sectors
To increase revenues, a windfall tax is planned in six sectors: banks, payday loan companies, retail chains with more than five outlets, insurers, telecommunications companies, and bureaux de change. The draft also includes additional regulations for the gambling sector.
The budget parameters are usually published by the Ministry of Finance together with the medium-term budget forecast. They are then discussed in the Tripartite Council with the social partners, the draft is adopted by the Council of Ministers, and it is submitted to the National Assembly for a final vote. The procedure usually takes about a month.
Sources: bntnews.bg