The draft Budget 2026 announced by the government caused unprecedented political and expert resistance hours after its official presentation by Finance Minister Galab Donev.
Skepticism united the parliamentary opposition and leading financial analysts around the thesis that the budget plan is pro-inflationary, devoid of reforms and puts the country in a dangerous debt spiral.
The main criticism is directed against the set a deficit of 5.7% of GDP, which exceeds the Maastricht criteria for the eurozone and risks triggering the European Commission's excessive deficit procedure.
The political front: “Total lack of reforms“ and a debt trap
The parliamentary forces outside the government reacted sharply, with the most frequently used historical reference being the economic crisis of the mid-1990s:
- GERB: Toma Bikov defined the excessive deficit as a “sign of a total lack of reforms, which the majority of “Progressive Bulgaria“ is obliged to do“. He warned that if the framework is adopted in its current form, the country's progress will be similar to that of the government of Zhan Videnov.
- „We continue the change - Democratic Bulgaria“ (PP-DB): The right-wing demanded that the government immediately withdraw the project and rework it with a deficit of up to 3%. Assen Vassilev called the parameters “more scandalous than those of the budget that brought down the “Zhelyazkov“ cabinet, and the co-chairman of “Yes, Bulgaria“ Ivaylo Mirchev added that instead of bold reforms in the first year of government, we see “more of the same“ with a touch of the Videnov era. Economist MP Martin Dimitrov criticized the lack of measures to cut costs.
- „Vazrazhdane“: Leader Kostadin Kostadinov described the budget plan as a „complete catastrophe“ and warned of an enslaving debt spiral. According to him, the planned increase in debt to 55 billion euros in 2028 (35% of GDP) is „killer for Bulgaria“, given the revelation that only 2.6 billion leva will remain in the fiscal reserve at the end of the year.
Expert consensus: Risk of inflation and artificial inflation of deficit
The country's leading economists share the concerns of politicians, but emphasize the long-term structural defects of the project:
- Accelerating inflation: Analysts warn that the high deficit will directly fuel consumer prices. Forecasts indicate that despite the calming of international markets, domestic inflation in the country could reach levels of 8% in the coming months.
- Ignoring the revenue side: Financial experts report that the government is focusing on spending instead of optimizing collection. According to economist Georgi Raykov, the state relies on increased price control and intervention in business, instead of stimulating well-performing sectors that actually generate revenue.
- Lack of market flexibility: Employers' organizations note that although the budget is based on a more realistic basis compared to previous estimates, the lack of reforms in the administration will burden business and slow economic growth.
The position of the ruling party: “We will not cut incomes“
In response to criticism from the ruling majority of „Progressive Bulgaria“ countered that they would not succumb to „unprincipled calls for an immediate reduction of the deficit to 2%“. According to their spokesman, Petar Vitanov, the burden of consolidation will not be transferred to citizens through salary cuts or freezing the minimum wage, but will be sought by closing leaks in the system, limiting the gray sector, and shrinking bloated administrative structures.
The project is about to enter the plenary hall for consideration, where some of the most severe parliamentary clashes of the year are expected.