The defense budget in 2027 will amount to 2.23% of gross domestic product, while €3.151 billion has been allocated to the Ministry of Defense. This represents a 17% increase compared with 2026, Defense Minister Dimitar Stoyanov said while presenting the financial framework.
The most significant increase is in capital expenditure. It will rise from €868 million in 2026 to more than €1.223 billion in 2027, representing an increase of nearly 40%.
More funding for equipment and a smaller share for personnel
Capital expenditure will account for 40.96% of the Ministry of Defense budget. Operating expenses have been allocated 14.49%, while personnel costs will account for 44.54%. By comparison, in 2026 personnel costs represented 51.65% of the ministry’s budget.
Personnel expenditure will increase by €4 million. The funds are intended to offset the increase in the minimum wage.
The central budget also includes €27.5 million for the appointment of new service members. The funds are intended mainly for enlisted personnel to fill vacancies in the Bulgarian Armed Forces. According to Stoyanov, the shortage of service members is more than 20%.
By September, more than 400 people from the structures of the Ministry of Defense who had become eligible for retirement had been released. The funds allocated for them will be returned to the ministry’s budget and used to appoint additional service members.
Modernization of the military continues
The capital program includes the continuation of contracts for the delivery of new F-16 fighter jets, multipurpose modular ships, Stryker combat vehicles and coastal anti-ship missile systems. Funding is also planned for the maintenance of Cougar and Panther helicopters.
New projects include the acquisition of 3D radars, surface-to-air missile systems and 155-millimeter howitzers under the SAFE mechanism. A total of nine projects have been included in the instrument. One of them – for the acquisition of 3D radars – has already been completed, while the project for five IRIS-T surface-to-air missile systems is expected to be completed by the end of the year.
Under SAFE, a contract for 155-millimeter ammunition is also being prepared, for which €246.7 million has been allocated. Bulgaria is also planned to join a contract for systems to detect and counter unmanned aerial vehicles – up to 10 mobile systems and up to 10 containerized systems.
Outside SAFE, the modernization of the C-27J Spartan aircraft, acquired in 2008, is planned. According to Stoyanov, some of the avionics are already becoming obsolete and are no longer being manufactured. The advance payment under the contract is expected to begin in 2027.
„We cannot continue to fulfill our functional duties, including our obligations to NATO structures, without the MiG-29 aircraft,“ Dimitar Stoyanov said.Deliveries of the F-16 aircraft and Viper Shield systems are expected in 2027, and they are to take over combat duty. The budget also includes funding for small arms for the Land Forces, up to six specialized firefighting aircraft and various types of drones for reconnaissance, target designation and kinetic operations.
New investments and infrastructure
For the first time, €5 million has been allocated for research and development, new developments and the implementation of innovations in the Bulgarian Armed Forces.
The development of transport capabilities is also planned through the acquisition of up to 1,040 trucks, 700 of them in the first phase. Projects and construction work at more than 150 sites in 20 different formations are planned.
Among the infrastructure priorities is the renovation of the Varna Naval Base, which is to be carried out next year. The cost of the project has been reduced by €19 million compared with the amount initially stated.
Sources: nova.bg