The 2027 budget officially sets the stage for Bulgarian citizens to become poorer for the first time, said the chairman of "Continuing the Change" Assen Vassilev on NOVA. According to him, incomes will grow slower than inflation, which will reduce the purchasing power of households.
„For the first time, you have officially set the stage for Bulgarian citizens to become poorer. Their incomes will grow less than inflation increases“, said Vassilev. He also questioned what other expenses are planned, since even in such a scenario the country may not meet the 3% deficit target.
What parameters did Vassilev specify
The leader of “We continue the change“ claims that the budget includes over 2 billion euros in new taxes against about 50 million euros in spending cuts. Among the measures he mentioned are a new increase in the maximum social security income, a tax on food vouchers and higher tax assessments.
Vassilev also stated that the minimum wage will be about 30 euros lower than the value that would have been obtained under the old formula. These claims cannot be verified through the full draft budget, as the document has not yet been made public.
The autumn macroeconomic forecast published by the Ministry of Finance projects that inflation in 2027 will reach 4% and economic growth will slow to 2.5%. The document states that more moderate household consumption will be linked to income dynamics.
Government: Social program will be preserved
Prime Minister Rumen Radev rejected the accusation that the cabinet is hiding the budget. He said that the project will be submitted by the end of October, but indicated that talks with the European Commission on the financial parameters are ongoing.
“Our red lines are pensions, maternity, tax breaks for children, wage increases and income guarantees“, Radev said. According to him, the government is striving to preserve the social program, while simultaneously reducing the deficit and ensuring funding for European programs.
The Prime Minister indicated that the real deficit is 5.7%, and the cabinet's goal is to reduce it below 4%, with a prospect of reaching 3.5%. He defined this as a difficult task, also related to the need to coordinate the budget with the European Commission.
The final effect on income, taxes and social payments will become clear after the publication of the full draft budget and its submission to the National Assembly.
Sources: bntnews.bg, bgonair.bg