site.btaOnly About 73 Municipalities Ready to Apply “Polluter Pays” Principle, Says Finance Minister

Only a small number of municipalities in the country - around 73 - are ready to implement the “polluter pays” principle to determine the amount of household waste fees, Finance Minister Temenuzhka Petkova said at the Annual Meeting of Local Authorities in Albena resort, on the Black Sea, on Monday. The forum is organized by the National Association of Municipalities in the Republic of Bulgaria (NAMRB).

Petkova emphasized that the issue of reforming the waste collection fee has been pending for a long time and that an infringement procedure has already been initiated against Bulgaria. According to her, risk analyses of the current situation will be conducted, and decisions will be made to find a way out.

Regarding the adoption of the euro, she stated that mayors should not be worried and should help calm the concerns of the local population. The Finance Minister said that introducing the new currency will bring greater security and stability, more opportunities for business development, and quicker access to financial markets.

Petkova reminded attendees that the 2025 State Budget was adopted in mid-January this year, following seven consecutive snap parliamentary elections and political instability in the country. She clarified that as of August 31, revenues were BGN 6 billion higher compared to the same period last year. According to her, expenditures for the same period in 2025 amount to BGN 57 billion, with the largest increase seen in social and health insurance payments. There is also a rise in capital expenditures, due to accelerated implementation of projects under the Recovery and Resilience Plan. Nearly BGN 2 billion have already been disbursed under the plan, which Petkova said indicates that the projects are progressing.

The budget balance as of August 31 is in deficit, Petkova added. She specified that the shortfall includes BGN 3.4 billion from the national budget and BGN 1.8 billion from EU funds. She noted that if payments under the Recovery and Resilience Plan are made by the end of the year, the deficit will be largely offset.

Petkova dismissed claims that the population has become poorer, pointing out that personnel expenses have increased by BGN 3.7 billion. According to her, there is also growth in social payments, including pensions. The average gross salary for the first and second quarters rose by 13.6%, she noted. Annual inflation stands at 2.6%, and is expected to reach 3.5–3.6%, according to the Finance Minister.

Petkova urged mayors to increase collection of overdue payments. She said that outstanding receivables amount to about BGN 1 billion, with the largest sums due for unpaid waste fees, vehicle taxes, and property taxes.

Regarding the 2026 State Budget, she emphasized that the deficit must be no more than 3% of the country’s Gross Domestic Product (GDP). Anything above that level would indicate financial insecurity, Petkova warned. She said the Ministry of Finance is currently conducting analyses and assessments, and once this process is complete, a consultation procedure with NAMRB will be initiated.

Petkova assured meeting participants that the State will not seize the transitional balances in municipal budgets for this year. However, she urged municipalities to plan wisely how to spend their funds.

The Minister added that payments under Annex 3 are ongoing, and Bulgarian municipalities have access to the funds, with BGN 460 million already paid out. Payments began in early June, Petkova reminded, adding that a further BGN 290 million will be distributed to municipalities by the end of the year through the budget of the Ministry of Regional Development. She also noted that in the coming days, the Finance Ministry and the Bulgarian Development Bank will sign an agreement. Once central budget resources are paid out, the funding will then continue through the bank, she said.