site.btaCC Leader Vassilev: No Government Until Now Has Dared Such Racketeering, Hit against Bulgarians

No government to date has dared such racketeering and such a blow to Bulgarian citizens, Continue the Change leader and former finance minister Assen Vassilev said here on Thursday. He was speaking at a news conference on the 2026 draft state budget. 

Vassilev explained that this could lead to "revenue that seems reasonable to collect." If taxes and social insurance contributions are not raised, unrealistic VAT revenue is removed, and the extraordinary increase in the maximum social insurance income is eliminated, revenue will be down by EUR 1.857 billion, he said. In order to maintain the budget framework and a 3% deficit, expenditures must also be reduced by this amount, Vassilev argued.

He called on the Ministry of Finance to explain the draft budget and not "hide behind a veil of secrecy." According to him, money is being taken from citizens and businesses.

There is EUR 51.4 billion in planned revenue for 2026, which is a 20% increase over the amount that will be collected for 2025, Vassilev pointed out. With about 3% economic growth and just over 3% inflation, a 20% increase in revenue requires a dose of arrogance," the MP said.

He pointed out that the 2026 draft budget includes unrealistic VAT revenues, social security contributions are increased by 2%, dividend tax is being increased, and the maximum social security income is being increased by BGN 470, compared to the Ministry of Finance's March 2025 forecast of an increase of BGN 300. "The Ministry of Finance claims that this will generate revenues of over EUR 50 billion, but I am highly skeptical," Vassilev said. According to him, what will happen is that in 2026, an additional BGN 600 per month will be taken from companies and workers. Companies in the private sector will not increase salaries, the MP predicts. Vassilev pointed out that because of this, the planned increase in social security contributions and taxes will not come to be. In addition, in order to avoid paying higher taxes on dividends, owners will withdraw them at the lower tax rate this year, Vassilev believes. According to him, this will decapitalize the economy and reduce investment.

Vassilev also emphasized that the revenue side of the 2025 budget is 7% lower than expected, or EUR 3.2 billion short, including EUR 1.4 billion in unmet tax revenues and EUR 1.8 billion less than expected EU funds. "The Ministry of Finance continues to claim that we will receive all the funds planned for this year, but on Wednesday it became clear that we will not receive more than EUR 200 million, and moreover, the chance of receiving a third payment under the National Recovery and Resilience Plan is almost zero," Vassilev said.

When asked about progressive taxation, which the BSP - United Left said Bulgaria should return to, Vassilev pointed out that the State's money must first be spent effectively and only then should taxes be raised. Regarding the support of the BSP - United Left for a 2% increase in social insurance contributions, the MP said that this is the difference between Left-wing and centrist politics.

Nikolay Denkov from the Continue the Change - Democratic Bulgaria parliamentary group said that investors will withdraw from Bulgaria. "There is a common business environment, and with this budget, the Government wants to drive business out of Bulgaria," he said.