site.btaFinance Minister Petkova Describes Draft 2026 State Budget as “Most Realistic One Possible”

Finance Minister Temenuzhka Petkova said that the draft 2026 State Budget represents “the most realistic budget possible”, as it has been prepared on the basis of current legislation and the policies pursued to date. She spoke to reporters in the National Assembly’s lobby before presenting the 2026 State Budget Bill to the Budget and Finance Committee on Tuesday.

According to Petkova, the government will work to meet the parameters set out in the draft. She said that the European Commission’s forecasts align with those of the Finance Ministry – the planned deficit for 2025 stands at 3% on an accrual basis, a deficit of 2.7% of GDP is projected for 2026, while in 2027 the Commission expects Bulgaria’s deficit to rise to 4.3% of GDP.

“The European Commission attributes this increase to higher defence spending, with the peak expected in 2027, when these expenditures will be particularly significant,” Petkova said.

Asked whether funds will be available for Christmas supplements for pensioners, Petkova explained that an analysis is currently underway of the budget’s revenue and expenditure performance. A decision will be taken based on this assessment within the governing coalition, she said.

Petkova also stressed that no increase in value-added tax is planned.