15/07/2026 The National Assembly adopted at first reading the bill on the State Budget of the Republic of Bulgaria for 2026

The National Assembly adopted at first reading the bill on the State Budget of the Republic of Bulgaria for 2026 with 143 votes in favour, 81 against, and no abstentions.

The bill on the State Budget foresees a deficit under the consolidated fiscal programme for this year of 5.7 percent of gross domestic product (GDP). The revenues, grants and donations set out in the draft budget amount to 49.6 billion euro, and the total expenditures amount to 56.8 billion euro. According to the draft, the maximum amount of new government debt that may be incurred in 2026 is 10.1 billion euro. This amount includes a loan of up to 3.261 billion euro under the European Security Measures for Europe (SAFE) instrument to strengthen the defence industry. The public debt is expected to reach 37.7 billion euro or 30.1 percent of GDP. Total capital expenditure in 2026 is expected to reach EUR 9.360 billion, including national funding of EUR 4.028 billion and European funding of 5.331 billion euro (including the National Recovery and Resilience Plan).

An increase in revenues from operating the toll system and an increase in vignette fees by 30 percent, from 1 August 2026, as well as an increase in excise rates on tobacco and tobacco products from the same date, are planned. It is also planned to increase the maximum social security income to 2,300 euro and increase the minimum social security thresholds for economic activities.

From 1 August 2026, civil servants under the Civil Servant Act and those employed under the Judiciary Act will pay personal insurance contributions. From this date, insurance contributions are distributed between the insurer and the insured person in a ratio of 80:20, and from 1 January 2027 - in a ratio of 60:40, as is the case for other employees. A review of the mechanism for determining the minimum wage is planned, and until a new mechanism is determined, the minimum wage will remain at its current level of 620 euro. The mechanisms for linking wages to the average and minimum wages are removed.

The bill provides for a 10 percent reduction in personnel costs, effective 1 September, with the exception of municipalities, military personnel, and persons employed under the Ministry of Interior Act, the State National Security Agency Act, the National Security Service Act, the State Intelligence Agency Act, the Enforcement of Sentences and Detention Act, and Article 5 of the Medical Institutions Act.

Parliament adopted at first and second reading in one sitting a bill denouncing the European Energy Charter Treaty and the Protocol on Energy Efficiency and Related Environmental Aspects, signed on 17 December 1994 in Lisbon.