The Bulgarian government presented its draft budget for 2026 on Wednesday, setting a deficit of 5.7% of GDP, the highest figure in three decades, and immediately drew fire from opposition parties who accused the cabinet of repeating the same fiscal practices it once condemned.
Deputy Prime Minister and Finance Minister Galab Donev outlined the framework to reporters, projecting revenues of 49.5 billion euros against expenditures of 56.8 billion euros. The resulting deficit amounts to 7.2 billion euros. Government debt is projected to exceed 30% of GDP this year, climbing to 33.2% in 2027 and 35.2% in 2028. The fiscal reserve, known as the Silver Fund, is expected to stand at 2.6 billion euros by the end of the year. The budget assumes inflation of 3.6%.
Donev said the 5.7% figure represents an improvement over a projected 7.4% deficit the cabinet says it inherited, framing the draft as the first step in a broader stabilization effort. The government's stated goal is to bring the deficit below 3% by 2028.
Capital expenditures for 2026 are set at 9.36 billion euros, including 4.2 billion euros in national financing. Municipalities are slated to receive 1.18 billion euros for investment programs, with an additional 600 million euros allocated on top of that. Donev said the increase in spending compared to the previous government's draft budget stems largely from covering unpaid travel agency invoices and the municipal investment program.
