Progressive Bulgaria (PB) has withdrawn its controversial proposal to increase Bulgaria’s debt ceiling by 3.8 billion euros, following strong criticism from opposition parties. However, the measure is expected to return shortly, this time formally submitted by the Council of Ministers.
The proposal was part of a package of budget-related measures announced by PB lawmaker Konstantin Prodanov amid the continued absence of a regular state budget for 2026. Alongside the planned debt increase, the package included reducing the state subsidy for political parties from 4.09 euros to 3 euros per vote and freezing the future indexation of the COVID pension supplement while keeping it in place for current recipients.
The measures are being discussed as part of amendments to Bulgaria’s extended budget law, which also covers the budgets of the State Social Insurance system and the National Health Insurance Fund. According to Prodanov, the country is unlikely to have a regular budget adopted before August 1.
The debt proposal immediately triggered criticism from across the opposition. GERB, Democratic Bulgaria, Revival, and representatives of We Continue the Change all questioned both the legality and necessity of the move. Critics argued that only the Ministry of Finance has the authority to initiate an increase in state borrowing and warned that allowing MPs to propose such measures could create a dangerous precedent.