Difficult Budget Decisions for 2026: Klisurski on Expenditure Optimization and Risks to Fiscal Position

The regular budget for 2026 will require difficult decisions aimed at optimizing public spending, as otherwise Bulgaria risks losing its good fiscal position. This became known from the words of the caretaker Finance Minister Georgi Klisurski during a business breakfast on the topic "Economic perspectives for Bulgaria in 2026".

During the event, organized by the American Chamber of Commerce in Bulgaria, Klisurski stated that the preparation and adoption of a regular budget is of utmost importance, as the financial and fiscal situation in the country is currently on autopilot, and the trends do not herald good news.

"So, whoever prepares the budget for 2026, whether it will be our team or the next government, and whoever adopts the budget for 2026 in parliament after the elections, will have to make some difficult and confident decisions. And they may not be easy," Klisurski said.

According to him, these decisions will have to be directed towards reforming the expenditure side of public finances.

"I think that in Bulgaria we should first focus on optimizing spending, controlling spending, and the appropriate expenditure of public funds," the caretaker minister said.

He expressed his position that some of the public expenditures, which are generated on a daily basis in our country, can be reduced.

"We must, in different areas, in different administrations, at least with regard to some issues, start thinking from the bottom up and really reassess whether we need all the expenses we are currently making? Do we need all these processes? Do we need all these people or positions?" Klisurski said.

According to him, if these issues are subjected to a serious analysis, it will become clear that there is serious room for optimizing expenses. Klisurski pointed out that in the present world we live in, new technologies like artificial intelligence can help make unpopular decisions in the past in the direction of optimizing expenses and processes that will be economically meaningful and in the interest of taxpayers.

"It may be easy for me to say it as a caretaker minister, but I really want to send a strong message to the future members of parliament and to the future cabinet to seriously consider this issue. Because otherwise it will be difficult to maintain the really good position we hold in Europe in terms of fiscal policy, namely our low levels of deficit and debt," Klisurski said.

The caretaker minister also outlined the challenges for the absorption of payments under the Recovery and Resilience Plan. He pointed out that last night the caretaker government sent a request to the EC for the fourth payment of about 1 billion euros, and in October or November the final payment of about 2.5 billion euros is expected. According to him, the challenges regarding these funds are related to the fact that our country must invest 4 billion euros in the economy by the end of August in order to receive these payments.

"It will not be easy, but we will cope," he said.

According to Klisurski, Bulgaria has great potential for growth, but its engine should be investment, production, and export, instead of relying only on consumption. If our country manages to change this, then it will be able to reach the next phase of economic growth.

He stated that Bulgaria will meet all the criteria for membership in the Organization for Economic Cooperation and Development (OECD) by the end of the year, expressing hope that from the beginning of the next year, 2027, our country will officially join the organization.

During his speech, Klisurski summarized the measures in support of businesses and the most vulnerable part of society in our country because of the effects provoked by the crisis in the Middle East, pointing out that they are targeted, temporary, and tailored to the needs.

The business breakfast was also attended by the Governor of the Bulgarian National Bank, Dimitar Radev, who gave a speech and answered several questions from the audience.