site.btaUPDATED Defence Ministry Budget for 2026 Set at EUR 2.708 Bln

The budget of the Ministry of Defence for 2026 will total EUR 2.708 billion, Minister Atanas Zapryanov said at the Parliamentary Defence Committee meeting here on Friday. MPs will vote on the draft state budget for 2026 on first reading.

Defence spending will account for 2.25% of the country’s gross domestic product (GDP), the Minister noted.

The 2026 defence budget is planned at EUR 2.657 billion, with an additional EUR 51 million allocated for the state’s higher military schools, according to the draft legislation. Personnel expenses are set at EUR 1.434 billion, while capital expenditures will amount to EUR 946 million.

The funds for personnel are sufficient, but regarding those needed to support the investment programme, there will be certain limitations and some replanning will be necessary, the Minister explained. Zapryanov commented that personnel expenditures in the draft budget are increased by EUR 173.6 million compared to this year, which will make it possible to continue measures aimed at addressing the large number of vacant positions and improving motivation for recruitment and retention in service.

In connection with the 2026 State Budget Bill and with the spending ceiling under the updated 2026–2028 medium-term fiscal forecast, the Ministry of Defence will face difficulties in implementing the Army’s modernization investment programme, the Minister said. He explained that the reason is a significant shortfall in capital expenditure under already signed delivery contracts amounting to EUR 210 million.

The Ministry has examined all possible options for limiting expenditures in 2026 and will take steps to reduce them, including negotiations with the United States to reschedule the obligations under the contract for the second stage of delivery of the F-16 Block 70 aircraft - shifting EUR 361 million from 2026 to 2028 - Zapryanov announced. The Minister said that by rescheduling the F-16 payments, the shortfall under some already signed contracts - around EUR 210 million - will be compensated, as well as the necessary expenditures under the Security Action for Europe (SAFE) instrument, amounting to EUR 151 million. It is essential that the SAFE funds for 2027–2028 be provided as an addition to the defence budget for those years, Zapryanov added.

The budget for 2027 is expected to be EUR 2.941 billion (2.48% of GDP), and for 2028 - EUR 3.183 billion (2.72% of GDP), the Minister said.

Regarding capital expenditure for 2027–2028, more payments under existing contracts will be allowed, but it will be necessary to limit the initiation of some new investment projects. These difficulties stem from the Government’s intention to control investment spending and inflationary processes, Zapryanov added.