The Ministry of Finance published a new draft Law on the State Budget for 2026 and an updated medium-term budget forecast for the period 2026–2028 on "its official internet edition", just a few hours after trade unions, employers' organizations and the government .
The draft laws for the state budget for 2026, initially prepared, approved by the Council of Ministers and submitted for consideration to the National Assembly in November this year, have been withdrawn by a decision of the cabinet, it is stated in the draft report of the Minister of Finance Temenuzhka Petkova.
The goals of fiscal policy and the parameters of the budget framework for the period 2026–2028 are in line with the priority of maintaining fiscal sustainability in the medium term and with the need to implement measures both on the revenue side and in spending policies, as a result of which fiscal consolidation is outlined.
The size of the budget balance under the consolidated fiscal program (CFP), expressed as a share of GDP, for the forecast period 2026–2028, provides for a deficit of 3.0% of GDP in 2026, 2.8% of GDP in 2027 and 2.4% of GDP in 2028.
With this deficit, the total amount of revenues, aid and donations under the consolidated fiscal program amounts to EUR 50.402 billion in 2026, including receipts under the "Common Fisheries Policy" (CFP).
The total amount of expenses under the consolidated fiscal program for 2026 is estimated at EUR 54.051 billion.
According to the national fiscal rule in the Public Finances Act, expenses for 2026 are planned at 40.1% of GDP, for 2027 – 39.9% of GDP, and for 2028 – 40% of GDP. It is pointed out that the application of the activated exception for defense expenditures leads to a temporary reduction of total expenditures below the limit of 40%. With the introduction of the revised EU economic governance system, the new rule for limiting net expenditure growth is becoming a leading benchmark.
Based on the assumptions set for the period 2026–2028, the state debt is expected to reach EUR 37.6 billion (31.3% of GDP) in 2026, EUR 43.5 billion (34.2% of GDP) in 2027 and EUR 49.0 billion (36.6% of GDP) in 2028. The maximum permissible amount of state debt by the end of 2026 cannot exceed EUR 37.6 billion.
The minimum size of the fiscal reserve as of December 31, 2026 is fixed at EUR 2.4 billion.
The maximum amount of new state debt that can be assumed during the year in accordance with the Public Debt Act is EUR 9.940 billion, and this limit includes a loan of up to EUR 3.261 billion to receive financial support under the instrument "Security measures for Europe (SAFE) by strengthening the European defense industry".
The autumn edition of the macroeconomic forecast of the Ministry of Finance for the period 2026–2028 forecasts economic growth of 2.7% in 2026. In the period 2027–2028, real GDP growth is expected to move in the range of 2.5–2.4%. The average annual inflation for 2026 is expected to remain close to the level of 2025 – around 3.5%, slowing down to 2.9% in 2027 and to 2.5% in 2028. The forecast is confirmed by the Fiscal Council, the project states.
In preparing the forecast for tax revenues, the following proposals for changes in tax legislation were taken into account, as well as the continuation of the validity of some measures already introduced:
- Expanding the scope of goods with high fiscal risk.
- Expanding the system for electronic tracking of the movement of vehicles transporting goods with high fiscal risk.
- Continuation of the validity of the new excise calendar for excise rates on tobacco and tobacco products, introduced on May 1, 2025, with the aim of a balanced and gradual increase of excise rates for tobacco products.
- Maintaining the policy of using increased tax relief for children and children with disabilities in 2026.
- Providing a more favorable depreciation regime for the purposes of taxation for electric vehicles.
- From January 1, 2026, an increase is planned for the variable part of the fee under Art. 30, items 3 and 4 of the Gambling Act for licenses to organize gambling games - from 20% to 22%.
The following changes are foreseen in the insurance policy for the period 2026–2028:
- From January 1, 2027, the insurance contribution to the "Pensions" fund of the state social insurance is increased by 1 percentage point, and from January 1, 2028 - by another 2 percentage points.
- The minimum insurance income for self-insured persons is increased from January 1, 2026 to EUR 620.20.
- The maximum insurance income for all insured persons is increased from January 1, 2026 to EUR 2,300, in 2027 – to EUR 2,505, and in 2028 – to EUR 2,659.
The main expenditure policies behind the increase in budget expenditures in the period 2026–2028 are pointed out in the project:
- Increase in the minimum wage from January 1, 2026 to EUR 620.20.
- Increasing the amount of the allowance for raising a child up to 2 years of age to EUR 460.17 for the entire period until the end of 2028.
- Increase of the cash allowance for raising a child up to 8 years of age from a parent (adoptive parent) to EUR 460.17, also for the entire period until 2028 inclusive.
- Increasing from 50% to 75% the amount of the cash allowance for unused leave due to pregnancy and childbirth under Art. 50a of the Social Security Code, for unused leave for raising a child up to 2 years of age under Art. 54, as well as for unused leave for the adoption of a child up to 5 years of age under Art. 53d of the same code.
- Pensions for insurance length of service and age, granted until December 31 of the previous year, are updated from July 1 of the respective year under Art. 100 of the Social Security Code, through the so-called "Swiss rule".
- Implementation of a unified income policy by increasing personnel costs in the budget sphere by 10% in 2026 and removing automatic mechanisms for determining salaries in some sectors, linked to the average wage.
- Maintaining the income policy for pedagogical specialists in the system of preschool and school education.
- Launching a Program to support resident doctors with funding in the amount of EUR 30.0 million for 2026.
- Increase in the funds in the budgets of the municipalities as a result of changes in the natural indicators in activities delegated by the state in the fields of culture, social services, healthcare and others.
Earlier today, after negotiations at the Ministry of Finance, employers' organizations and trade unions agreed on the key parameters of the draft budget for 2026. As a result of the agreement reached, the planned increase in the tax on dividends from 5% to 10% is removed, the planned increase in pension insurance contributions by 2 percentage points from 2026, as well as the requirement for mandatory use of the software approved by the NAP for sales management in commercial facilities (SUPTO) and other similar measures.
The Minister of Finance Temenuzhka Petkova stated that the National Council for Tripartite Cooperation will be convened on Monday, after which a meeting of the Council of Ministers will be held in order for the draft budget for 2026 to be submitted to the National Assembly in the afternoon hours of the same day, recalls BTA.