Bulgaria presents 2027 draft budget amid deficit concerns

Bulgarian Prime Minister Rumen Radev has presented the 2027 draft budget, describing it as a "heavy truck without brakes, flying towards a precipice" that requires urgent course correction. The proposed budget includes social measures such as increasing the minimum wage to 660 euros, raising pensions by 7.8% using the Swiss rule, and expanding maternity benefits. It also allocates funds for the National Children’s Hospital and young doctors.

To manage rising costs, the government plans to reduce the state administration by approximately 5,000 positions through digitalization and structural optimization. The budget framework anticipates revenues and expenditures exceeding 50 billion euros, with a projected deficit likely to surpass 3% and national debt expected to exceed 39 billion euros.

Political and economic figures have reacted critically. Opposition leader Nikolay Denkov warned that the budget could lead to a recession, noting that state debt is projected to rise from 24% of GDP in 2024 to over 30%. Financial expert Petar Iliev also expressed skepticism regarding the realism of inflation targets and the consolidated deficit, which he estimated at 4.2%. Finance Minister Galab Donev stated that efforts to reduce the deficit by nearly 4 billion euros are necessary to prevent a financial catastrophe.