Budget 2026: 5.7% deficit, more expensive vignettes, and new insurance contributions

Key Changes in the 2026 State Budget

The National Assembly has begun the second reading of the 2026 draft budget, which projects a budget deficit of 5.7%. The process follows an intensive 12-hour session of the budget committee, where proposals for additional social benefits were rejected.

The financial framework provides for new state debt amounting to 10.1 billion euros, of which 3.261 billion euros is targeted financing under the European SAFE instrument for the defense industry.

Taxes, Social Security, and Income

• Vignettes and Excise Duties: An increase of 30% in vignette fees and excise duties on tobacco products is scheduled for August 1.
• Personnel: A 10% reduction in personnel costs for the administration is planned starting in September (with exceptions for the Ministry of Interior, defense, and municipalities).
• Social Security: Starting August 1, civil servants and those employed in the judiciary will begin paying personal social security contributions.
• Minimum Wage: Frozen at the level of 620 euros until a new mechanism for determination is developed.

Administrative and Structural Reforms

The budget provides for a number of structural changes, including:

• Reduction of the subsidy for religious denominations to 7.7 euros.
• Closing the Commission on Files and transferring its activities to the State Archives Agency.
• Reduction of boards of directors in public enterprises from 5 to 3 members.

Targeted funds amounting to 2 million euros were also introduced for the repair of the Liberty Monument on Shipka Peak, as well as funding for the Scientific Institute of Western Outlands.