site.btaNext Budget to Include Major Reforms, Agency Closures, Measures to Bring More of Economy into the Open, Deputy PM Pekanov Says

The next State Budget will include major reforms, including administrative restructuring, the closure of agencies and new measures aimed at bringing more of the economy into the formal sector, Deputy Prime Minister Atanas Pekanov said in an interview with Bulgarian National Television (BNT) on Sunday.

On Wednesday, Parliament approved the 2026 State Budget Bill at first reading. During the debate, opposition MPs criticized the proposed budget deficit and the lack of reforms in the draft. The governing majority said the budget reflected the legacy inherited by the current government and presented the true state of public finances.

Commenting on the National Recovery and Resilience Plan (NRRP), Pekanov reiterated that the August 31 deadline is final. He said important projects under the Plan had been completed in recent weeks and that Bulgaria expects to receive EUR 1.8 billion under the fifth payment request.

Earlier this week, Pekanov appeared before Parliament's Committee on European Affairs and Oversight of European Funds, where he said the government's objective was to ensure that as much funding as possible under the NRRP is disbursed by August 31. He called for all institutions to mobilize, stressing that the deadlines are real and final, with only 45 days remaining. August 31 is the deadline for declaring all expenditure under the Plan, he noted. According to Pekanov, beneficiaries have been trying through various channels to secure extensions for the implementation of their projects.

"Bulgaria helps Ukraine where it can," Pekanov said. According to him, Bulgaria has no financial capacity to provide further financial assistance to Ukraine, while the country's capacity to offer military support has also been exhausted. Greater emphasis should now be placed on peace and diplomacy, which he described as Bulgaria's official position.

Pekanov also said that, despite what he described as "the hysteria we hear in the media", 45% of those who voted for Progressive Bulgaria and Prime Minister Rumen Radev share his view that Bulgaria should pursue a balanced policy and focus on helping to de-escalate the conflict. "Of course Russia's brutal, senseless aggression and war must stop," he said. "But, on the other hand, the approach adopted by European leaders over the years has not produced results."