Bulgaria's fiscal policy debate intensifies ahead of 2026 budget
Political parties in Bulgaria are intensifying a debate over fiscal discipline as the 2026 state budget is finalized. Dr. Petar Moskov of the “Blue Bulgaria” movement has proposed a constitutional amendment that would introduce a fiscal budget anchor, limiting the annual public debt to half a percent of the previous year’s gross domestic product, a mechanism used in Germany, Switzerland, Sweden, Spain and Poland. He argues that such a rule would halve current household debt levels.
The governing coalition, represented by Progressive Bulgaria’s parliamentary leader Petar Vitanov, has defended the draft budget, saying it reveals a “real diagnosis” of public finances with a 7.4% deficit that the government aims to reduce to 5.7% within five months. Vitanov stressed that neither pensions, salaries nor other social payments will be cut. He announced audits of debts owed to municipalities and construction firms and said any payments will be made only after thorough review. The reforms will also target high‑paid board members of state enterprises, while pledging that ordinary workers’ incomes will not be reduced.