"We spend today, let the next ones worry! It is clear to me that I will be drafting the 2026 budget item by item, but those before me have patched the holes in the budget with advance payments. The fashion of patch-up budgets is over".
With these words, Deputy Prime Minister and Minister of Finance Galab Donev addressed journalists at a briefing, outlining what he found in the state treasury and what changes the new government is planning.
He announced that the 2027 budget draft will explicitly include a "Eurovision 2027" item, emphasizing that the logic of public finances is no different from that of a household. "The state's finances are in full sync with the finances of every family," said Donev.
According to him, for years, expenditures have been outpacing revenues, many bills remain unpaid, and too often there is reliance on new loans. "Until now, the state budget followed the rule 'spend today, let the next ones worry'," the finance minister summarized.
He recalled that the revenue side was heavily impacted by the previous government's decision to distribute an interim dividend in 2025, calculated on 100% of the current profit as of June 30, 2025. As a result, over 560 million euros will not enter the state budget, Donev emphasized.
The minister also reported that by the end of April, the deficit amounted to 1 billion and 750 million euros. Added to this are nearly 2 billion and 550 million euros in expenses that remain to be paid, as well as 1 billion and 100 million euros in unpaid municipal projects for this year alone. Additionally, in 2025, an advance corporate tax of 363 million euros was withdrawn from banks, which shrinks revenues for 2026.
Against this backdrop, the new government is presenting the main measures in the 2026 budget: tax rates remain unchanged, pensions will be increased by 7.8% from July 1, and social payments for the most vulnerable groups are provided for.
"Those before us thought about the people, but fed their own people. 'Progressive Bulgaria' is putting an end to the automatic raising of salaries for the Prime Minister, ministers, deputy ministers, regulatory bodies, the judiciary, security structures, higher education institutions, and others. Along with this, we will propose that they renounce the automatic linkage of their salaries to the average salary in the public sector. We are placing a cap on remuneration for everyone employed in the budget sector. No one will receive a higher salary than that of the President of Bulgaria," stated Galab Donev.
Furthermore, from September 1, personnel salary costs will be reduced by 10% without lowering individual remuneration – the reduction will be achieved through staff cuts and optimization of structures. "The first and most visible taps through which public resources are leaking are being closed. This is a budget with which we say 'stop to the state feeding troughs'," the finance minister was categorical.
"Today we are launching the budget procedure for 2026 and sending instructions to all primary budget administrators. Taxes will not be increased, pensions will be increased by 7.8% from July 1, and social expenditures will not be reduced. We will propose revenue and expenditure measures for the deficit and possible debt limitation," Donev further pointed out.
He recalled that besides current problems, old deferred obligations were also inherited, and the overall picture at the moment is a deficit of just under 1 billion euros and over 2 billion euros in expenses subject to payment.
The minister emphasized that the cabinet is introducing strict financial discipline based on a unified approach – the increase in personnel costs should occur at the same percentage for all primary budget administrators and with a clear income policy.
"We will propose to the members of parliament that they renounce the automatic linkage of their salaries to the average salary in the public sector," added Donev, insisting that the political elite must set a personal example.
A hard cap is also being placed on remuneration in the budget sector. "No one will receive a base salary higher than that of the President," the finance minister is firm, assuring that this closes the first and most visible "taps" through which public resources leak.
Among the other measures in the budget framework are:
– The maximum insurable income will be increased by 189 euros and will reach 2,300 euros;
– From August 1, 2026, the minimum insurance thresholds will be increased by 5%;
– Spending on non-essential activities will be limited, and control over public spending will be strengthened;
– An uncompromising policy against tax and insurance evasion will be pursued.
Galab Donev stated that the government's goal is for the 2026 state budget to be adopted by July 1. "The budget will be what it turns out to be after the presentation of all calculations by the primary budget administrators," he emphasized.
"There will be cuts everywhere – 10% cuts in personnel costs. There are vacant positions everywhere," the finance minister summarized, giving a clear signal that the battle against bloated bureaucracy will be one of the main highlights of the new budget policy.