Bulgaria's 2027 budget needs tough reforms and spending cuts, and the civil service should shed more than the planned 10% of jobs, the Fiscal Council says.

The council says Bulgaria must cut its deficit by at least 2% of GDP in 2027, then by at least another 1% in 2028. It calls this urgent because the EU has opened an excessive-deficit procedure against Bulgaria, and warns the country risks a debt spiral.

Interest payments will reach 1.88 billion euros in 2028, about 1.3% of GDP — money the council says is being taken away from education and healthcare.

The council's other main demand is pension reform. It says pensions still don't vary enough based on what people paid in, which breaks the link between contributions and the pension someone ends up getting. The council wants state employees to pay the same social security contributions as private-sector workers. That should apply to police and military staff too. The split of contributions between state employees, magistrates and the state budget should also match private-sector rules, it says. The reform should also boost the second and third pension pillars.

The rules on raising wages and pensions need a permanent rewrite, the council says, so they have a lasting positive effect on the budget.

The council also wants a close look at why planned capital spending keeps falling short, plus steps to plan and deliver it better.

On healthcare, the council wants clarity on how the health ministry's policies affect the National Health Insurance Fund, which pays for medical services. Higher spending on the fund's main budget lines doesn't mean better healthcare, the council says. It only points to a growing need for transfers from the state budget to keep the fund's books balanced.