Finance Minister Galab Donev
Finance Minister Galab Donev presented Bulgaria’s draft 2026 state budget, setting a deficit at 5.7% of GDP, or about 7.2 billion euros, and outlining a series of fiscal and structural measures aimed at stabilizing public finances over the coming years. He said state debt is projected at 37.7 billion euros, or just under 35% of GDP, and described the deficit as manageable, while acknowledging the need for additional borrowing of more than 2 billion euros to cover the gap.
Donev confirmed that from August 1, 2026, civil servants, including those in the judiciary and public administration, will gradually begin paying personal social security contributions, with compensation measures planned to preserve net incomes. He also rejected claims that minimum wages would be frozen until 2028, saying discussions are ongoing with social partners on future wage levels. According to the minister, salary costs in parts of the public sector will be reduced, including restrictions on pay in state-owned enterprise boards, where remuneration will be capped at the level of the president and prime minister.
The budget also introduces new revenue-raising measures, including a 30% increase in vignette fees, expanded toll system coverage, and higher gambling-related taxation. Additional changes target intermediaries in the gambling sector and strengthen oversight of the shadow economy, including tighter fiscal control over high-risk goods, e-commerce, and the fuel supply chain. Authorities also plan mandatory electronic invoicing for all domestic transactions starting in 2027, alongside talks with banks to block payments to illegal gambling operators.
