Pen by pen new expenditure, but not on coffee, but on old contracts (Summary, graph)

The Bulgarian government has sparked significant debate over its proposed budget for 2026, with Finance Minister Georgi Donchev stating that the current budget does not include the policies advocated by his administration. During a meeting of the National Tripartite Council, Donchev emphasized that while the budget does not reflect their priorities, the principles of realism, honesty, accountability, responsibility, normalization, balanced approach, preservation of rights and revenues have been considered during its preparation. The social partners will discuss the draft 2026 budget as well as the budgets of the National Health Insurance Fund (NHIK) and the State Social Security Fund (SSSF). Donchev noted that these meetings have historically marked important turning points in public policy and expressed gratitude for the participation of social partners.

Donchev acknowledged criticisms regarding the lack of ambition and boldness in the 2026 budget, as well as concerns raised by protesting civil servants. He assured that the issues highlighted by protesters would be discussed within the tripartite dialogue framework. He also pointed out that expectations for this year's budget are often unrealistic and stressed the importance of maintaining a connection with the state's financial condition. Before the start of the council session, representatives from the Confederation of Trade Unions of Bulgaria (KNSB) and the "Support" trade union gathered to protest against the draft budget, expressing concerns about potential reductions in personnel expenses and insurance contributions for civil servants.

The budget proposal includes capital expenditures amounting to 2.013 billion euros for municipalities, which represents an increase of 1.1 billion euros compared to previous years. This additional funding is intended to cover unprocessed projects dating back to 2024 and unpaid subsidies totaling 96.9 million euros. Other allocations include 139.5 million euros for maintenance and repair costs of roads from past years, derived from out-of-court agreements signed in 2024 and 2025. These figures include interest and court fees amounting to approximately 160 million euros for 2026.

Operating expenses for the Cabinet have increased by 8.5 million euros due to normative acts adopted by previous governments, including payments for judgments related to commercial cases. Additional funds were allocated for the demolition of the Soviet Army Memorial and celebrations marking the anniversary of the April Uprising in Vratsa. The budget also includes funds for hosting events such as the Giro d'Italia and Eurovision, as well as elections, totaling nearly 200 million euros. Capital expenditures for defense have increased by 158 million euros, while spending on state agencies remains similar to last year at 2 billion euros.

Public infrastructure investments under European financing amount to 5.332 billion euros, including 3.329 billion euros under the recovery plan and 1.426 billion euros under operational programs. Donchev warned that failure to utilize targeted European funding within deadlines could result in projects being completed using national budget resources and the return of European funds. Additionally, the removal of indexations on contracts with the Agency for Public Procurement (API), the Bulgarian Defense Industry (BDJ), and the National Center for Judicial Information (NCKJI) resulted in savings of 383.8 million euros.

Prime Minister Rumen Radev announced plans to stop blind payments based on invoices and fictitious protocols, emphasizing the need for accountability among civil servants who sign and accept poorly executed activities. He outlined proposals for legal changes allowing public infrastructure to be built using private capital based on best European practices. Radev criticized the existing model for infrastructure development, arguing that it fosters corruption, leads to lower quality, and inefficient use of public funds. He ordered inspections of road repairs and construction projects. The poverty line for 2027 is set to increase by 50 euros, reaching 443 euros.