Declaration: 2026 Draft State Budget for Republic of Bulgaria
The draft budget for 2026 does not introduce reforms. Instead, it reproduces a model that increases administrative spending, expands public debt, and burdens the real economy. It lacks a strategic framework, clear objectives, and mechanisms for efficiency. Unreformed systems continue to receive funding by default without accountability and without demonstrating measurable results.
We believe that the political parties in parliament lack a shared vision for development and show no readiness to work on a national strategy. This results in day-to-day decisions that will place citizens and businesses under growing financial pressure. If this course continues, society will gradually but inevitably become poorer for years to come.
Our position is clear.
This budget in its current form cannot be supported. It must be entirely revised to safeguard fiscal stability, encourage investment, and prevent the decline in the social and economic standards of citizens. Our assessment is reinforced by the European Commission’s autumn package which places Bulgaria among the countries “at risk of non-compliance” with the EU fiscal framework. This means there are serious concerns that the 2026 budget may fail to meet the requirement for a deficit below 3% of GDP and ensure debt sustainability. Bulgaria is one of only three countries in this category, together with Hungary and Spain.
If the governing majority does not show readiness for real corrections and meaningful dialogue we are prepared to initiate active measures — including civic protests and public pressure for revising the budget. We will not accept policies that pass the bill on to working people and future generations.
We strongly object to increasing the tax burden on labour and capital — measures that will drive away investment, expand the grey economy and ultimately reduce rather than increase revenue through:
higher taxes on labour and capital;
increases in social security contributions and the maximum insurable income;
doubling the tax on dividends;
reinstating SUPTO and adding further administrative requirements;
the absence of a clear medium-term fiscal framework;
a formal social dialogue with no real results.
The rise of public debt from 24.2% to 35.6% of GDP within four years is a serious warning sign. Without effective reforms citizens will pay the price through a lower standard of living and limited prospects.
We oppose the adoption of a “budget for the administration” rather than a budget for growth.
New and higher public-sector expenditures are made without any link to outcomes, while the real economy pays the bill. It is completely unacceptable and economically unsustainable to pour more money into the same unreformed systems while those who create value are penalised through higher taxes.
We call for:
Revising the draft budget by removing increases in social security contributions and taxation, reassessing the minimum and maximum insurable income, and withdrawing SUPTO.
Preserving the tax and social security model as a key competitive advantage of Bulgaria.
Limiting inefficient spending by freezing administrative staff numbers and halting automatic public-sector wage increases that are not linked to performance.
Structural reforms to modernise the administration, digitise processes, and ensure the sustainability of the pension system.
Our commitment
We are ready to participate in a dialogue on reforms, but we will not legitimise a budget without vision. If institutions do not demonstrate the will to change we will mobilise society behind clear actions — including protests and a public pressure campaign.
We will stand by this position — in front of the National Assembly, in front of society and all institutions.