site.btaBudget Revision Will Not Affect Social Benefits, Says Parliamentary Finance Committee Chair

The revision of the state budget will not come at the expense of social benefits, said parliamentary Budget and Finance Committee Chair Delyan Dobrev (GERB-UDF), speaking on Bulgarian National Radio on Sunday.

In the revised draft budget, the government has responded to the expectations of both businesses and protesters, he said, noting that four key demands have been met: there will be no increase in the dividend tax, the software system for commercial outlets will not be introduced, the pension contribution will remain unchanged, and the maximum social insurance income has been reconsidered. Automatic mechanisms for setting salaries in certain sectors tied to the average wage will be removed, except for teachers and the judiciary.

Overall wages in the public sector are set to rise by 10%, although increases for some employee categories may be smaller. “The budget revision is not at the expense of social benefits, but rather at the cost of higher capital expenditures,” Dobrev emphasized.

He also highlighted a step toward reducing the size of the public administration, as 5,500 of the 10,500 positions that have been vacant for more than six months will be phased out over the next three years, starting in 2026. According to Dobrev, these vacant posts have previously been used to distribute quarterly bonuses. Capital expenditures in defence, transport, and regional development have been cut by around 20%.

Dobrev said that the government had to listen to public opposition to changes in the tax system, praising young people and civil society for voicing their concerns. The 2026 budget is expected to show a 3% deficit, with the debt ceiling set at up to EUR 10 billion. He noted that part of this figure reflects refinancing of old debt and the maturity of financial instruments, not new spending. 

The vote of no confidence in economic policy, filed on Friday by Continue the Change–Democratic Bulgaria, comes at a time when Bulgaria ranks fifth in the EU in economic growth, Dobrev said.

If the budget is not approved in December, a temporary “extended budget” will be implemented as a contingency, he added, expressing hope that the revised budget would be submitted to Parliament by the end of Monday. Dobrev said that he had already warned Budget Committee members that an extraordinary session would be scheduled for Tuesday at 10:00 a.m. to review the three draft budgets – for the state, the National Health Insurance Fund, and the State Social Security. He expects the three budgets to be considered for a first vote in Parliament by the end of next week. 

Dobrev noted that the initial draft budget had not taken into account proposals from employers and trade unions, calling this a mistake. He described the current draft as a compromise and expressed hope that Parliament would approve it without significant amendments.

Commenting on government’s plans to nationalize strategic assets, Dobrev said that the state should not acquire ownership of Lukoil, warning that such a move could expose Bulgaria to future arbitration risks.