The government today unveiled the outline of its 2027 draft budget. The deficit will most likely top 3%, while revenue and spending will both pass the psychological barrier of 50bn euros. State debt will be above 39bn euros.
On 27 October, prime minister Rumen Radev told reporters the cabinet would keep the higher pensions and maternity benefits, despite recommendations from the European Commission.
The background: Radev: Government will keep higher pensions and maternity pay in 2027 budget despite European Commission
The minimum wage will rise to 660 euros on 1 January. Pensions will go up on 1 July under the Swiss rule.
The plan provides more money for defence and social spending, tax breaks for parents and tighter limits on gambling. Part of the revenue is due to come from a new windfall tax on six main sectors, which has not yet been put to a vote.
Radev said the budget sets the state's vision, goals, priorities and policies. In his view, the 2027 budget must balance a smaller deficit against spending cuts, without people losing income and social support.
The state must cut and repay its large financial obligations and invest where economic growth can come fastest, the prime minister said.
"Our goal is one, and it is clear: for Bulgarians to live better and to live more securely," Radev said.
"Beyond the figures, the direction is extremely important to us," he added. What matters is where you start, where the country stands now, and where and how it wants to go, the prime minister said.
The presentation at the University of National and World Economy was the first held there. Social partners were also expected.
The figures and the medium-term budget forecast are usually posted on the finance ministry's website, then discussed in the Tripartite Council with trade unions and employers.
The cabinet must approve the draft budget and send it to parliament for a final vote. It usually takes about a month from the presentation of the outline to the vote.