site.btaSofia Approves EUR 1.54 Billion Budget for 2026

Sofia’s Municipal Council approved the city’s 2026 budget on Thursday, setting the total financial framework at EUR 1.54 billion. The budget includes EUR 300.3 million in capital spending, focused on transport, road infrastructure, education and the urban environment.

Sofia Mayor Vassil Terziev noted that the budget was approved later than usual because of delays in adopting the national budget, leaving it to cover roughly three quarters of 2026. He highlighted education, public transport, infrastructure, neighbourhood improvements and Sofia’s green system as key priorities. The economic framework for public transport was also approved, with the mayor stressing that a significant deficit is expected in 2026, partly due to recent wage increases. He called for more efficient management of the municipal transport companies and a long-term investment plan.

Deputy Mayor Georgi Klisurski noted that the tax assessments used to calculate local property transaction taxes are planned to increase by up to 33% in 2027 and up to 35% in 2028 and 2029. The changes could generate around EUR 25 million in additional municipal revenue in 2027. Officials said the additional revenue will support kindergartens, schools, public transport, urban infrastructure and green spaces.

Terziev stated that despite the record budget size, the municipality's debt level remains low and below the statutory threshold of 15%. According to him, this creates an opportunity to secure additional funding for major infrastructure projects during the next term. He further noted that the Sofia Municipality's own-source revenues are increasing by approximately EUR 65 million in 2026, adding that this opens up additional possibilities for more ambitious planning regarding large-scale projects.

Terziev pointed out that, due to restrictions associated with the election period in 2027, the Municipality will be unable to incur new debt obligations during the time leading up to the elections. In his view, the increase in own-source revenues will make it possible to revisit the option of taking on new debt for major projects in 2028, emphasizing that such a loan would have a significant impact on the 2027 budget, effectively launching key city projects with a multi-year implementation horizon.