site.btaBulgaria’s Finance Minister Defends 2026 Budget, Highlights Modest Public-Sector Pay Rise and Pension Reforms Ahead of Euro Adoption

Finance Minister Temenuzhka Petkova said on Nova TV here on Sunday that the 2026 draft state budget provides an EUR 884 million increase in public-sector salaries compared to 2025 - the lowest annual rise since 2022. The Finance Ministry previously announced that average public-sector pay will grow by 5%.

Petkova said she listens to all criticisms of the 2026 Budget but has not heard arguments that substantiate the opposition’s claims. According to her, the document reflects everything that has happened in Bulgaria’s socio-political life over the past four years — “political limbo, lack of stability, the absence of a regular government willing to take responsibility for its policies.” She added that populism in public finance had been extremely high, and the 2026 Budget shows the consequences of that.

Responding to opposition claims that the draft contains excessively high spending and high debt, Petkova said all expenditures stem from existing legislation. “Every expenditure in the 2026 State Budget Law is based on the current legal framework and on the policies and standards adopted in recent years in the management of public finances,” she stated. She added that any revision of policy in various sectors would require a broad public debate with all stakeholders.

Petkova cited a Finance Ministry analysis focusing on two major expenditure categories — personnel costs and social and health-insurance payments, including pensions. From 2022 to the present, spending in these categories has risen by 33.81 billion leva. She stressed that wage and pension increases should happen through economic growth, when economic conditions justify them.

The minister expressed regret that the National Tripartite Council had not conducted a dialogue with employers, as this would have been an opportunity to clarify many of business’ concerns.

Regarding the planned two-percentage-point increase in the pension-fund contribution, Petkova noted that the last increase - by one percentage point - was in 2018. At that time, pension expenditures amounted to BGN 9 billion, compared to BGN 24 billion today. The state budget transfer required to pay pensions and all related benefits was BGN 4 billion leva then, compared to BGN 12.1 billion now. She said Bulgaria must have sustainable public finances and a stable pension system ahead of eurozone entry, and the measure aims precisely at that.

Petkova also stated that the introduction of the euro in Bulgaria has nothing to do with rising prices. The National Revenue Agency is carrying out 258 inspections at retail sites to determine whether price increases are justified. Sixty-five cases of unjustified price hikes have been identified. So far, more than 8,000 inspections related to compliance with the Euro Introduction Act have been conducted.

Finally, Petkova commented that in her view, Rumen Spetsov is the most suitable person to serve as special administrator of Lukoil. The post, she said, should not be held by someone who is an engineer or understands the technical operation of the refinery, but by someone capable of making management decisions involving complex financial processes.