site.btaMinisters Defend 2026 Draft Budget as Opposition Warns of Debt, Protests

Senior members of Bulgaria’s government defended the 2026 State Budget Act over the weekend, describing it as socially oriented and fiscally responsible, while opposition leaders warned of rising debt, uneven spending and the likelihood of further protests as Parliament prepares to vote on the bill.

Deputy Prime Minister Atanas Zafirov told Bulgarian National Radio that debate over the nature of the budget effectively ended once the draft entered Parliament, calling it a “joint budget of the governing majority and the Cabinet” that must be defended collectively. He highlighted measures such as increased second-year maternity benefits, preservation of the Swiss rule for pension indexation, and continued income growth as key social policies.

Zafirov dismissed criticism that the draft would harm household incomes, warning that such claims fuel public anxiety at a sensitive moment before Bulgaria’s planned entry into the eurozone. He argued that backlash against the budget stems largely from resistance to the higher dividend tax and the lifting of the social-security contribution ceiling - measures he said would primarily affect wealthier citizens. Trade unions, he added, had taken a more balanced view.

From the opposition, Continue the Change - Democratic Bulgaria Floor Leader Nikolay Denkov accused the Government of raising taxes while simultaneously relying on what he described as “massive borrowing,” estimating that the State would accumulate BGN 60 million in new debt per day. He said the draft budget provides disproportionate wage increases across sectors and argued that the ruling parties had ignored proposals to reduce deficits. Denkov said Tuesday’s planned protest outside Parliament, when its Budget and Finance Committee will meet, aims to ensure that citizens are heard, and he clarified that CC-DB had made no plans to “occupy” Parliament. The Vazrazhdane party, however, stated it would support such an occupation if it occurred. 

Finance Minister Temenuzhka Petkova also defended the budget on Sunday, emphasising that the EUR 884 million increase in public-sector salaries is the smallest annual rise since 2022. She maintained that all planned expenditures are mandated by existing laws and reflect the realities of the past four years of political instability, during which she said populism in public finance had soared. According to ministry data she cited, personnel and social-insurance spending has risen by BGN 33.8 billion since 2022.

Petkova rejected criticism over debt levels, arguing that changes in spending must result from broadly debated sectoral reforms. She again defended the planned two-percentage-point increase in the pension-fund contribution, noting that pension expenditures have nearly tripled since 2018 and stressing the need for stable public finances ahead of eurozone entry. She also reiterated that the euro’s introduction is not driving consumer-price increases, citing ongoing National Revenue Agency inspections that have already identified dozens of unjustified price hikes.

Labour and Social Policy Minister Borislav Gutsanov likewise described the draft budget as balanced and socially oriented, saying citizens should feel protected by a functioning welfare state. He confirmed that pensions will rise by 8% under the Swiss rule and said the 5% public-sector wage increase planned for 2026 is reasonable given current constraints. Although some agencies sought higher raises, he said increases must remain within the available fiscal framework. Gutsanov added that his ministry is preparing legislation to clarify the rules for holiday pension bonuses.

Parliament’s Budget and Finance Committee is expected to review all proposals from political groups this week before the bill proceeds to plenary debate.