Bulgaria approves 2026 state budget with 5.7% deficit

After more than 12 hours of debate, Bulgaria’s National Assembly passed the 2026 state budget on a second reading. The plan projects a primary deficit of 5.7% of GDP – about €7.2 billion – and allows new borrowing of up to €10.1 billion. Revenue is expected to reach €28.46 billion, with expenditures of €17.6 billion and net transfers of €16.89 billion. The budget includes a €17 million allocation for Ukraine, which opposition members attempted to block. Critics highlighted the high deficit and the risk of increased public debt, while the governing “Progressive Bulgaria” bloc defended the figures as necessary for fiscal stability. The legislation also removes year‑end bonuses for ministers and senior agency heads, aiming to save roughly €85 million. Health financing remains a concern: the National Health Insurance Fund’s budget of over €5 billion allocates around 40% of its resources to medicines, prompting calls for tighter controls. Deputy Prime Minister and Finance Minister Galab Donov remarked, "Бюджетната процедура е благодатно време за политически сметки и лъжи," emphasizing the politicised nature of the process.