Bulgaria's 2026 Budget Faces Criticism Over Limited Reforms, Says Vasyl Velev

Vasyl Velev, chair of the General Assembly of the Association of Industrial Capital in Bulgaria, discussed the 2026 state budget on Radio Focus. He highlighted positive aspects such as keeping the tax‑social security model unchanged, eliminating hidden liabilities – described as “taking the skeletons out of the wardrobe” – and a planned 10% cost reduction in several ministries. New measures include higher taxes on gambling, expected to generate over 100 million lev, and reforms aimed at curbing abuses of social funds, projected to save about 200 million lev. Additional revenue forecasts amount to roughly 200 million lev from taxes and 100 million lev from social security contributions.

Velev criticized the budget for lacking decisive action. He pointed out that the deficit remains at 7.2 billion lev and the national debt continues to rise, with reforms considered insufficiently ambitious. Symbolic steps such as freezing the salaries of deputies and ministers were described as ethical rather than economically effective. He noted that Bulgaria leads the EU in budget deficit at the end of the first quarter and urged stronger, more balanced reforms to prevent the deficit from reaching such levels again.