Policies for young people are among the government’s leading priorities in the 2027 budget. The Cabinet is allocating €30 million to raise young doctors’ salaries and resolve their problems with specialisation. Prime Minister Rumen Radev said this at the University of National and World Economy during the presentation of the state budget for 2027. The prime minister placed particular emphasis on support for students – both through scholarships and by improving living conditions.
“In this time of crisis, we will not abandon the people most in need. There has been a significant increase in social support,” Radev said, highlighting the additional €245 million earmarked in next year’s budget. “We are extremely committed to every policy concerning the family, maternity and children. The increases are everywhere,” Radev added. Alongside the €47 million already allocated, a further €50 million is being set aside for the National Children’s Hospital. Tax relief for children is increasing significantly, support for children with disabilities is being increased, and a new tax relief for child development is being introduced. “This will also shed light on certain processes surrounding the so-called private lessons,” the prime minister noted.
With regard to income policy, the prime minister highlighted the increase in the minimum wage, pensions to the full amount under the Swiss rule, and the salaries of teachers and university lecturers. Regarding the administration, Radev stressed that the salary increases would not cover the Ministry of Defence, the Ministry of the Interior and the security services, magistrates, MPs, ministers, deputy ministers, chiefs of staff, and the leadership of commissions and regulatory bodies. Speculation over food vouchers is also coming to an end – amounts of up to €102 will remain tax-free, while higher amounts of up to €200 will be subject to taxation, as is the practice in other European countries.
Accelerated infrastructure construction is also among the Cabinet’s leading priorities. “If we work as we have so far – using only public funds, it will take us at least 50 years,” the prime minister said, adding that the principle of public-private partnership would encourage private capital to take part, so that new infrastructure projects could be built with private capital. In addition, a record amount of €65 million is being earmarked for design work next year. The aim is to ensure as quickly as possible that actual construction begins on many projects simultaneously. “All of this can be, and I believe will be, built within two terms,” Rumen Radev added.
Regarding the fight against natural disasters, the prime minister said that the new specialised firefighting aircraft, six in total, would begin arriving next year. A specialised search-and-rescue vessel is also needed. “We see the great importance of having security in our sea – our territorial waters and exclusive economic zone,” Radev noted. The prime minister also highlighted the importance of digitising dam monitoring. He also pointed to measures to combat the “war on the roads,” including the National Road Safety Control Centre. The aim is to unite everything happening on the roads in a single information environment and impose total control over compliance with safety measures, as well as provide assistance to all drivers. Funding has also been provided for emergency medical assistance by air, “HEMS,” so that it can operate at its maximum capacity.
Administrative reform is also already under way. “We will not allow mass dismissals and mechanical staff cuts for their own sake, because this destroys administrative capacity. Our goal is different – to achieve speed and efficiency in the administration while simultaneously reducing costs,” Radev said. In his words, it is important to eliminate overlapping responsibilities and optimise the management chain, including through digitalisation. The prime minister also noted the problem of the dramatic increase in TELK assessments. “We will continue to protect the interests of people with disabilities, but we will be uncompromising towards fraudulent TELK assessments. We have already developed mechanisms for screening, identifying fraud, stopping it and preventing it in the future,” Radev said. At the same time, a process is under way at the Ministry of the Interior to release employees who receive both a pension and a salary, following the model adopted at the Ministry of Defence. As a result, more than 5,000 established positions will be optimised. The number of administrative structures will be reduced from 260 to 220. Management positions and the members of the boards of public enterprises are also being reduced, while their salaries are being limited where they do not correspond to the company’s financial condition.
Regarding support for business, Prime Minister Radev highlighted measures to reduce the administrative burden and encourage investment. €51 million more has been earmarked for the development of industrial zones and parks. “It is important to begin a partnership with international institutions so that we can organise these public-private partnerships in the best possible way. We are allocating funds for that as well,” Radev added.
Another €10 million is being earmarked for secondary vocational technical schools in the interests of increasing the number of highly qualified specialists. “We expect every euro invested by the state in these measures to be multiplied many times over in economic and financial benefits,” the prime minister said. At the same time, the threshold for priority projects is being lowered, which is particularly important for medium-sized and small enterprises. “We want to encourage the initiative of Bulgarian investors – dozens of medium-sized enterprises are waiting for things to get moving,” the prime minister said.
The prime minister stressed the importance of defence amid military crises in neighbouring countries, adding that the largest capital expenditure would be allocated to the development of defence capabilities – €418 million more. “We are reorienting the capabilities that we need to build in line with the new risks and threats, particularly those concerning surveillance, intelligence, targeting and communications systems, drones and anti-drone systems, alongside the other priority projects for the Bulgarian Armed Forces,” Radev added.