Bulgaria's 2026 budget outlines tax hikes, spending cuts and rising debt
The Bulgarian government plans to submit its 2026 State Budget on 1 July. It foresees a fiscal deficit of 5.7 % of GDP in 2026, narrowing to 3.8 % in 2027, with public debt projected to reach €37.7 billion (30.1 % of GDP) that year. Revenue is expected to hit €49.6 billion while spending will rise to €56.8 billion. Key measures include accelerated excise hikes on tobacco, higher fees for electronic commerce and fuels, a 30 % increase in road‑toll charges, a one‑off 5 % public‑sector wage rise, an increase of the maximum insured income to €2,300, and a 10 % reduction in personnel costs for parts of the administration. Capital spending of €9.36 billion will fund strategic investments and municipal projects.
Economists criticised the plan, warning that the deficit could be trimmed to 3.5‑3.7 % of GDP with stricter spending controls. Lyuboslav Kostov said inflation is "the best friend of the finance minister" because higher prices automatically boost revenues. Georgi Vuldev argued for deeper cuts in ministries such as the interior and judiciary, while Georgi Angelov called for greater transparency and binding budget limits on public contracts. The debate highlighted concerns over oversized capital programmes and the need for targeted reforms before the budget is adopted.