site.btaPolitical Reactions to Draft 2026 State Budget Continue on Thursday

The political reactions to the draft 2026 state budget continued on Thursday, after Wednesday's meeting of the National Council for Tripartite Cooperation (NCTC) of the Cabinet, employers and unions set to discuss the bill, was called off over the participating employers' organizations refusal to attend in protest against the draft budget. 

GERB-UDF Floor Leader Boyko Borissov said on Thursday that this year’s state budget is a coalition budget, and he will not allow the increase or decrease of people's incomes to be tied to the euro adoption. "I have assessed that risk and I will not allow it," Borissov told journalists in Parliament's lobby. Borissov said that the State has "subsidised business with BGN 1.1 billion since June" to make electricity cheaper, which in his view is helping generate profits. “In the current budget, mothers receive more, medical staff and doctors receive more, teachers, military personnel, police officers and security services receive more. Entire sectors receive more money in their pay slips, so that they can understand that it is not the euro that is causing prices to rise,” Borissov commented.

Later in the day, the GERB leader wrote on Facebook that government representatives and employer organizations held a meeting to discuss the predictability of economic policy, the conditions for growth, and the need for a balance between fiscal discipline and support for entrepreneurship. "At GERB headquarters, we had a constructive discussion with Deputy Prime Minister Tomislav Donchev, Finance Minister Temenuzhka Petkova, representatives of the Finance Ministry and employer organizations, including the Bulgarian Industrial Capital Association, the Bulgarian Industrial Association, and the Bulgarian Chamber of Commerce and Industry," Borissov's post said.

BSP - United Left Floor Leader Dragomir Stoynev told journalists his parliamentary group is concerned about the lack of dialogue between trade unions and employers and believes that employers should return to the negotiating table, as the State Budget Act is the most important law in the country. He said the coalition’s proposals aim to restore solidarity and fairness in the tax and social security system. Stoynev noted that "with the Bulgarian Socialist Party in Government, it is normal that, apart from the world of big capital, there should also be room for workers and employees whose rights have been taken away." Stoynev added that social security contributions are not a tax but a right of workers, and a 2% increase in contributions would not harm businesses or employees but would strengthen workers’ rights. Raising the maximum insurable income is also important, Stoynev highlighted, as higher earners currently contribute proportionally less. He added that further increases would motivate people to work for higher incomes. He also expressed support for the rise in the dividend tax, saying he understood employers’ discontent with the measure but pointed out that Bulgaria still has the lowest tax and social security rates in the EU.

Yes, Bulgaria Co-chair Martin Dimitrov said that his party, which is part of the Continue the Change - Democratic Bulgaria (CC-DB) parliamentary gorup, demands the withdrawal and revising of the draft budget, with arguments similar to those of employer organizations. Social insurance contributions should not rise because this will affect every working Bulgarian in the country and will reduce economic growth, instead there should be increased revenue collection, Dimitrov said.  The increase in the maximum social insurance contributions should be halved and the introduction of State-approved software in all commercial establishments from January 1, 2026, should be dropped. Yes, Bulgaria also insist that the additional debt of BGN 5 billion, which will finance the deficit, should be abolished. "Dividend tax must not increase. Higher taxes will reduce the grey economy," Dimitrov said, describing the increase as "schizophrenic".

Continue the Change leader Assen Vassilev commented that no government to date has dared such racketeering and such a blow to Bulgarian citizens. 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. 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. 

MRF - New Beginning leader Delyan Peevski said that his group supports the budget. “Everything we requested for the people is there,” he added. The police and military personnel salary increase has been retained, as well as the planned capital programme for municipalities through the Bulgarian Development Bank, he gave as examples. “I said that I would support this government because of the people. Everything is in there [the budget], everything is happening,” Peevski said. MP Yordan Tsonev also confirmed that MRF - New Beginning supports the draft budget. “We are not inclined to make concessions,” he said regarding the employers' dissatisfaction. “Over the past few years, they have received BGN 6.5 billion in energy subsidies, and the time has come to tighten these relations regarding the obligations of business to the State,” Tsonev said. According to him, the 2% increase in the social security burden is necessary because of the unbalanced state of the pension system. Tsonev said that at this stage, MRF - New Beginning does not support the abolition of the flat tax.

Vice President Iliana Iotova told reporters that the draft 2026 state budget can be a threat to all Bulgarians and the national economy, as "it only contains tables that shift funds from one pocket to the other". Iotova warned that the budget can also pose a threat to the euro area. The Vice President stated that nobody wants this version of the budget, neither those in power, nor the Finance Minister , nor the Prime Minister, and added: "Otherwise, how can we explain the fact that, to date, we have not heard a single argument in defence of this budget from either of them?"