site.btaDraft 2026 State Budget Fails to Meet Economic Needs or Support Growth, Says BRAIT

The proposed 2026 state budget does not meet the real needs of Bulgaria’s economy and fails to ensure key conditions for growth - predictability, competitiveness, and an investment-friendly environment, the Bulgarian Employers’ Association for Innovative Technologies (BRAIT) said on Wednesday in a statement on the financial framework published Monday evening by the Finance Ministry.

According to BRAIT, instead of focusing on reforms and efficient use of public funds, the draft relies on mechanically increasing revenues through higher social security contributions and expanding public spending, which according to BRAIT is a short-term approach that will weaken economic activity rather than secure sustainable system financing.

If not amended, the Association warns, the budget could lead to an 8-10% rise in labour costs, further fueling inflation; delayed investments and relocation of production to cheaper markets; expansion of the shadow economy; and larger deficits in the budget and social systems without any improvement in public services.

BRAIT stressed that, in the context of Bulgaria’s upcoming eurozone accession, what the economy needs are reforms, predictability, a long-term framework, genuine cooperation with business, and incentives for investment, innovation, and growth, rather than new burdens.