The Parliamentary Committee on Budget and Finance gave the green light at first reading to amendments to the Law on Revenue Collection and Expenditure for 2026. The main point in the bill is the possibility for the Council of Ministers to assume new state debt of up to 3.8 billion euros.

Why is the new debt necessary?

The funding is aimed at covering the budget deficit and ensuring liquidity for projects under the National Recovery and Resilience Plan (NRRP), explained Deputy Prime Minister and Minister of Finance Galab Donev.

According to Donev, this amount represents a ceiling, not a mandatory utilization of the entire resource. The funds will be used in tranches to ensure the rhythmic implementation of European programs and to avoid risks to current social expenditures.

Positions of the political forces:

  • Assen Vassilev (PP): Criticized the amount and the signals for a 7.4% deficit, pointing out that this looks like "over-financing at an inappropriate time."
  • Martin Dimitrov (DB): Described the proposal as a "blank check," as there is a lack of clarity regarding the overall fiscal framework.
  • Tsoncho Ganev (Vazrazhdane): Categorically opposed, describing the assumption of new debt as a disastrous "spiral."
  • Temenuzhka Petkova (GERB-SDS): Emphasized that the final decision should come with the adoption of the regular state budget for 2026.

The bill also includes the possibility of negotiations with the EC for a loan of nearly 3.26 billion euros under the SAFE instrument to strengthen the defense industry.