site.btaNational Assembly Budget and Finance Committee to Review Draft State Budget for 2026

The draft state budget for 2026 will be reviewed on Thursday at second reading by the Budget and Finance Committee of the National Assembly. The country’s first budget denominated in euros sets a deficit of 3% of GDP, or a negative balance of EUR 3.6 billion. It also foresees a maximum amount of new government debt for next year of up to EUR 10.5 billion, including up to EUR 3.2 billion under the SAFE instrument aimed at strengthening the European defence industry.

Key policy measures in the draft include raising the dividend tax from 5 to 10%; increasing the tax rate on gambling activities from 20 to 25%; introducing mandatory electronic reporting of sales revenue using sales management software approved by the National Revenue Agency; expanding the scope of goods subject to fiscal control; a 2-percentage-point increase in the pension-fund contribution; raising the maximum insurable income to EUR 2,352 as of January 1, 2026.

Total expenditures under the consolidated fiscal programme are set at 45.8% of GDP in 2026. Major spending policies contributing to this increase include raising the minimum wage from EUR 550.67 to EUR 620.20 as of January 1, 2026. Updating work-related pensions granted up to December 31 of the previous year, which will be adjusted from July 1 under the “Swiss rule” by 7.6%, amounting to EUR 491 million.

Capital expenditures in 2026 will total EUR 7.76 billion, including EUR 3.605 billion in national funding and EUR 4.155 billion in European funding, including the National Recovery and Resilience Plan.

The macroeconomic forecast for the period, prepared by the Finance Ministry, projects economic growth of up to 2.7% in 2026, with GDP expected to reach EUR 120.1 billion.

A total of 96 proposals were submitted for amendments between the first and second readings of the 2026 State Budget Bill.

On Wednesday the Parliamentary Budget and Finance Committee adopted at second reading the draft budgets of Public Social Insurance and the National Health Insurance Fund for 2026.

Employees of several state agencies held protests across Bulgaria Wednesday demanding that a 20% salary increase and improved working conditions be provided for in the 2026 State Budget Bill.

In the evening, people filled streets in central Sofia at the square known as the “Power Triangle”, where the new National Assembly building is flanked by the President’s administration building and the Council of Ministers on Wednesday evening, to protest the adoption of the 2026 budget bills. The protest lasted more than six hours and ended after midnight. The gathered citizens formed a human chain around the National Assembly building and booed the MPs as they left the building. The demonstrators chanted "Mafia". "The budget has a hole in it, we do not want bankruptcy", "No consensus? No second reading", "You are using our money to make trouble", "I want a future in Bulgaria", "We are fed up! We want to live normally" some of the posters carried by protesters said.