site.btaParliament Continues with First Reading of Draft State Budget for 2026

Parliament continues on Friday with the first reading of the draft state budget for 2026, according to the National Assembly’s agenda.

On Thursday, the plenary session only heard the reports of the parliamentary committees on the first draft budget in euros, and the debate was scheduled for today’s sitting. MPs approved at first reading the Public Social Insurance and the National Health Insurance Fund Budget Bills for 2026.

The draft state budget sets a planned deficit of 3% of GDP, while government debt is expected to reach EUR 37.6 billion (31.3% of GDP) in 2026. The maximum amount of new government debt that may be incurred is up to EUR 10.5 billion, including up to EUR 3.2 billion under the SAFE instrument aimed at strengthening the European defence industry.

Next year’s draft budget proposes raising the dividend tax from 5% to 10% and introducing mandatory electronic reporting of revenue from sales through software for sales management approved by the National Revenue Agency. From next year, the variable portion of the state licence fee paid by gambling companies under the Gambling Act for organizing games is set to rise from 20% to 25%.

From January 1, 2026, contributions to the Pension Fund will increase by two percentage points, the minimum contributory income for self-insured individuals will rise to EUR 620.20, and the maximum contributory income for all socially insured individuals will be EUR 2,352.

The minimum wage will rise to EUR 620.20 as of January 1, 2026. The childcare allowance for children up to two years of age will increase to EUR 460.17, as will the allowance for fathers (or adoptive fathers) caring for a child up to eight years old. Work-related pensions will be updated from July 1 under the so-called Swiss rule.

Personnel costs in the public sector are planned to increase by 5% in 2026, with specific sectors following the applicable legal framework. The policy of raising teachers’ salaries will continue next year, aiming to ensure that they reach at least 125% of the country’s average wage.

For 2026, an additional EUR 260 million is allocated as a transfer from the central budget to the budget of the National Health Insurance Fund to support a raise in payment for medical staff in healthcare facilities.

The investment programme for municipal projects will continue, with a maximum planned allocation of up to EUR 920.3 million for projects under signed agreements.

Friday’s agenda also includes the regular parliamentary question time, with Deputy Prime Minister and Minister of Transport and Communication Grozdan Karadjov and Finance Minister Temenuzhka Petkova, Interior Minister Daniel Mitov, Regional Development Minister Ivan Ivanov, Education Minister Krasimir Valchev, Culture Minister Marian Bachev, Agriculture Minister Georgi Tahov, Economy Minister Petar Dilov, Energy Minister Zhecho Stankov, and Environment Minister Manol Genov taking part.